Measures to improve fiscal sustainability and debt management at the provincial level: a case of South Africa

Public debt and fiscal sustainability are pressing issues for provincial governments in South Africa, posing significant challenges to effective governance and service delivery. Using desktop research, the article explores the impact of inefficient financial management, corruption, and governance weaknesses which exacerbate fiscal pressures and hinder sustainable development. The results showed that a plethora of factors contributed to rising public debt and fiscal instability in provinces, including limited revenue-generation capabilities, heavy reliance on national transfers, escalating costs of service delivery, and unfunded mandates. The article recommends that South African provincial governments can modernise revenue collection systems, adopt cost-saving technologies, revise the equitable share formula, and strengthen financial accountability and transparency. The study underscores the importance of innovative and collaborative approaches to ensure long-term economic stability and equitable development across South Africa’s provinces. By implementing these strategies, provincial governments can reduce their debt burdens, improve fiscal sustainability, and enhance their capacity to deliver essential services.