Debt service costs in South Africa surpassed health spending in 2020/21 and reached R426.3B in 2025

  • Debt service costs in South Africa overtook government health spending in 2020/21.
  • In South Africa's 2025 budget, debt service costs stand at R426.3B, compared to R296.1B for health.
  • Debt service costs grew at 11.3% CAGR (2017–2025), more than double the 5.0% CAGR of government health expenditure.
  • The gap between debt and health spending widened sharply after 2020/21, with debt consistently pulling ahead.

South Africa’s debt service costs overtook health expenditure in 2020/21 and continue to grow at an alarming pace. By 2025, the government is expected to spend an estimated R426.3 billion on debt servicing, compared to R296.1 billion on health. The gap between the two is widening, driven by the faster growth of debt obligations compared to healthcare spending.

This highlights how rising debt costs are crowding out critical social investments. For every rand allocated to health in 2025, nearly one and a half rand will go towards servicing debt.

Source:

National Treasury—South Africa

Period:

2017–2025
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