The country’s parliament announced, on the day that the Budget Speech was expected to be delivered, that it would be postponed until a later date, reportedly over concerns within the GNU about a proposed 2% increase in VAT, among others.
For the first time in its democratic history, South Africa has postponed its 2025 Budget Speech to March 12, after it was initially expected to be delivered on February 19.
This was after reports of an emergency cabinet meeting, called by President Cyril Ramaphosa, earlier on Wednesday following concerns by members of the executive committee, which included a proposed 2% increase in Value Added Tax (VAT). It would have taken the country’s VAT to 17% from the current 15%.
National Assembly speaker, Thoko Didiza announced to parliament that an agreement could not be reached regarding these proposals.
“Cabinet decided not to come and do a presentation of the budget and allow themselves enough time to relook at the budget and come back to this house in March, at a time at which they will inform us,” she said.
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Finance Minister, Enoch Godongwana later briefed the media on the postponement announcement, where the new date was announced.
“Cabinet is united in the view that the budget must strike a balance between the interest of the public, economic growth and fiscal sustainability,” he said.
Political party leaders in the country have each offered their view with the Economic Freedom Fighters’ Julius Malema stating that “this is unprecedented”.
“This is not a practice we want to set for this parliament. It is going to be your legacy that, during your tenure, that parliament could not debate and adopt a budget. You are denying this body an opportunity to receive a budget, debate it, accept it or reject it,” Malema added in parliament.
The Democratic Alliance’s (DA) John Steenhuisen later said, “There were some concerns around some of the proposals in the current budget that members of the GNU felt were not in-line with the growth agenda in South Africa”.
“What we want to do is come back with a budget that will give South Africans hope that there is now a big move forward under the Government of National Unity to fix the economy, create jobs and ensure that we can combat the high cost of living.”
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