Godongwana hits back at DA over budget proposal claims

Finance Minister Enoch Godongwana says the Democratic Alliance (DA) did not submit or present any proposals to him about the budget.

Godongwana tabled the 2025 budget in the National Assembly on Wednesday, where he announced a 0.5 percentage point increase in VAT. This, after the budget tabling was postponed last month, due to unhappiness among the Government of National Unity (GNU) partners, ANC included, over a proposed 2% VAT increase.

Appearing before the four finance committees of Parliament on Friday, Godongwana hit back at DA MPs in the room that accused him of ignoring sound budget proposals sent to him.

“As of now, I don’t have a proposal from the DA. All I know is that they sent a letter to the President, not to me. I never heard those proposals. Other things raised in cabinet, such as spending reviews and structural reforms, are incorporated in the speech.”

The Finance Minister also told MPs that the VAT increase is necessitated by the need to improve social services, such as health for the poor.

“The health budget had been so eroded; the accruals amount to R21 billion. Now, if all of us care about the poor, whose services had been eroded, as much as we have different views on matters, we keep our eyes on the ball.”