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Finance Minister Enoch Godongwana during a media briefing
Finance Minister Enoch Godongwana says Cabinet is due to hold further discussions in order to find each other so that a newly agreed on budget could be tabled on March 12th.
This follows dramatic scenes in Cape Town, where Godongwana was unable to table the 2025 budget, due to disagreements within the Government of National Unity partners.
Godongwana elaborates, “Section 27 of the Public Finance Management Act (PFMA) requires that the annual budget be tabled prior to the start of the financial year or in exceptional circumstances, on a date as soon as possible after the start of the financial year, as a Minister of Finance may determine. Therefore, further discussions in Cabinet, will take place in preparation for a new, or amended budget to be tabled, on the 12th of March 2025, that’s your next date for the new budget.”
Political parties’ reaction
DA leader John Steenhuisen says the postponement of the budget is a sign that the Government of National Unity (GNU) is working well.
The budget speech was postponed due to a disagreement between GNU partners over an expected two percent VAT increase.
The decision to postpone was taken at an urgent cabinet briefing between President Cyril Ramaphosa and GNU partners, shortly before the speech was due.
Steenhuisen elaborates, “Today is very good example working, any observer should take heart, shows in SA have group of parties in government, in charge, taking wise and financially sound decisions.”
Meanwhile, EFF leader Julius Malema says the postponement of the budget is a sign that Government of National Unity has collapsed.
Malema says the postponement proves his predictions right that the GNU was never going to last.
“There is no government. If don’t adopt a budget, government collapses, grand coalition collapsed. Told you. never agree to 2% VAT and that is why they’re scared to come here, because will be rejected.”
The leader of Build One SA (BOSA) Mmusi Maimane has decried the short notice postponement of the budget speech.
Maimane says the partners in GNU should have organised better.
“It’s the most unprecedented in democratic SA. The GNU was not established yesterday, had 6 months to plan for this. It shows we must solve not for politics; we must solve for the people.”
On the other hand, the MK Party (MKP) says Godongwana should introduce a wealth tax, instead of burdening lower income and poorer taxpayers with tax hikes.
MKP MP Mzwanele Manyi, “Those people need a breather. You must at the top and adjust corporate tax. They have lower tax on basis that will create jobs. But we have 42% unemployment, so not using the leeway. So, we might as well get more money from them via increase from corporate tax.”
Parliamentary leader of ActionSA Athol Trollip says the postponement of the budget does not bode well for the country’s international image.
Trollip had this to say, “The whole world’s eyes already on us, with executive orders. years of arrogance, ANC used to stick budget under our nose. Now it’s a new dispensation. They should’ve sorted this out long ago, lay this at feet of the President and Minister, should’ve finalised long time ago. “
