{
  "id": 7518536,
  "title": "How Treasury plans to constrain government spending, borrowing",
  "url": "https://urgent.news/2026/09/15/how-treasury-plans-to-constrain-government-spending-borrowing-7518536",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-15T09:10:38.000Z",
  "source": {
    "name": "The Citizen",
    "slug": "the-citizen",
    "url": "https://www.citizen.co.za/business/how-treasury-plans-to-constrain-government-spending-borrowing/"
  },
  "original_language": "en",
  "account": "National Treasury Director-General Duncan Pieterse announced plans to introduce a permanent, binding fiscal anchor to constrain government spending and borrowing, aiming to maintain sustainable public finances. A fiscal anchor serves as a rule or target, preventing future governments from repeating past fiscal mistakes. Pieterse revealed that legislation has been drafted, technical work completed, and an update will be provided in the Medium-Term Budget Policy Statement on October 21.\n\nA fiscal anchor lowers borrowing costs, reduces the risk premium charged for lending to the country, and locks in economic gains over the long term. Finance Minister Enoch Godongwana had previously stated the intention to continue engagements on fiscal anchors, with a proposal for a principle-based fiscal anchor expected in the Medium-Term Budget Policy Statement after cabinet, parliament, and public consultation. Pieterse clarified that this approach avoids legislating a hard numerical rule, opting instead for flexible standards such as requiring spending to grow no faster than expected economic growth.\n\nThe National Treasury is addressing municipal financial instability, including outstanding balances with national departments and potential non-payment. Plans to amend the Municipal Finance Management Act and introduce public-private partnership regulations for local government are in the pipeline. The government has also undertaken structural reforms, including developing a new white paper on local government and reviewing the local government fiscal framework. Pieterse highlighted South Africa's achievement of three consecutive primary surpluses, with the latest projected at R131 billion, marking a significant increase from three years ago. He remains confident that the debt-to-GDP ratio will stabilize and decline over the medium term.",
  "summary": "Fiscal anchor legislation to be detailed in the mid-term budget - and national departments have been told to settle their debt with municipalities or face 'engagement'",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}