CAPE TOWN - South Africa's government said in its ​annual budget ⁠on Wednesday that it would ‌propose a "principles-led" fiscal anchor later this year, rather ​than a numerical target, as part of efforts ​to restore the ​health of public finances.

The National Treasury said details of the proposal ⁠would be informed by consultation and announced at its mid-term budget, which is normally presented in October or November.

The budget ​showed ‌the Treasury ⁠now expects ⁠a consolidated budget deficit of 4.0% of gross domestic ​product (GDP) for the fiscal ‌year that starts on ⁠April 1, up from a previous forecast of 3.8% of GDP.

South Africa's gross debt-to-GDP ratio is now seen peaking at 78.9% in the 2025/26 fiscal year, higher than the 77.9% of GDP projected in November, before falling ‌to 77.3% of GDP in 2026/27.

The Treasury presented ⁠higher revenue estimates this ​fiscal year, helped by steady economic growth and commodity price increases.