South Africa to introduce fiscal anchor bill in 2027
By the AFREEQUE newsroom, based on TimesLIVE
South African Finance Minister Enoch Godongwana says a bill establishing a fiscal discipline framework will be presented to Parliament in 2027. The plan, which requires governments to set and report on their financial targets, has Cabinet support, Godongwana said while presenting his medium-term budget in Cape Town.
South Africa plans to introduce a bill establishing a fiscal anchor framework in Parliament in 2027, Finance Minister Enoch Godongwana announced on Wednesday 21 October. He was speaking at the presentation of the 2026 Medium-Term Budget Policy Statement, TimesLIVE reported.
The bill, published in October for public consultation, would enshrine the sustainability of public finances in the Public Finance Management Act. It would not set a uniform numerical rule: each government would have to define its own fiscal targets in line with its electoral mandate, report on compliance with them in every budget and explain any significant deviation to Parliament, Godongwana said.
The independent Financial and Fiscal Commission would be responsible for assessing whether the fiscal framework was consistent with each government’s plan. The minister said the framework was intended to strengthen transparency and financial discipline while allowing room to adapt to economic conditions. He added that there was broad agreement within the government of national unity on the principle, despite questions about its effects on future administrations.
This step follows preparations for South Africa’s medium-term budget framework, published on 18 October. The government had also lowered its growth forecast for 2026 to 1.2% on 21 October.
Summary produced with the help of artificial intelligence tools, under AFREEQUE’s editorial responsibility.
