• The government has collected more tax money than expected so far this year, putting it on track to avoid overspending its budget.

• After nine months, the shortfall is R243-billion, down from R286-billion last year, but Sars is still R24-billion behind on collecting debts.

South Africa's 2026 budget might deliver some good news.

For years, the government has spent more money than it planned. This meant it had to borrow extra money or make cuts to services.

But this year could be different.

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Investec Chief Economist Annabel Bishop said there is "a chance of some improvement in the outlook". The government has collected more tax money than expected. The revenue collected so far this year is at 71.2% of what was budgeted. Last year at the same time, it was 70.7%.

The gap between what the government earns and what it spends is now R243-billion. Last year it was R286-billion, BusinessTech reported.

"At nine months of the year, the fiscal deficit is at R243-billion, and for the full 12 months at this pace it would be R327-billion," Bishop said. This would be R26-billion better than what was predicted.

But there is still a problem. Sars has collected R24-billion less than it should have from people who owe tax money. The government was supposed to raise an extra R35-billion in revenue this year.

Bishop said investors will be watching President Cyril Ramaphosa's State of the Nation Address on 12 February. They want to hear about plans to fix problems like broken rail lines, crime and corruption.

"The water and sanitation crises still persist, along with high unemployment, poverty and weak growth," Bishop said.

Bishop said the budget numbers might look better this year, but South Africa still needs to fix its spending problems. "Fiscal consolidation is still needed to return South Africa to an investment grade credit rating," she said.