The South African monthly government budget recorded a surplus of +R48.7bn in June from a deficit of -R10.bn in May. The print was lower than consensus estimates of +R55.7bn.

Note that June typically reports a notable seasonal improvement in the budget balance, as was the case this year.

• A +R75.8bn increase in revenue in June outweighed a +R16.9bn increase in expenses, resulting in the improved headline reading.

From a year-to-date perspective (April–June), a -R26.0bn budget deficit is a significantly smaller shortfall than the -R52.3bn deficit recorded in the corresponding period last year.

In the absence of any Eskom debt relief payments in the 2025/26 fiscal year-to-date, the gross borrowing requirement has also improved from last year’s corresponding figures (-R39.0bn vs -R72.9bn in 2024/25).