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Reworked Budget Rejected Again Despite VAT Increase Removal
A special Cabinet meeting convened by President Cyril Ramaphosa has once again rejected the reworked national budget, even after the removal of the controversial 2% VAT increase.
Ramaphosa called the emergency meeting on Monday to discuss the country’s budget uncertainty. However, after Finance Minister Enoch Godongwana presented his revised proposal, it was dismissed for failing to meet the needs of the people, according to IOL.
This marks the second rejection within a week, after the initial budget proposal was turned down, forcing the postponement of the 2025 Budget Speech to 12 March.
A Cabinet insider described the situation as politically sensitive, saying it had damaged Godongwana’s standing. In response, the government has established a sub-committee to reassess the budget, chaired by Deputy President Paul Mashatile.
NB : Please take note of the fake circuiting supposed X Post pic.twitter.com/S46TK6uEuw
— Khumbudzo Ntshavheni (@Khu_Ntshavheni) February 25, 2025
Cabinet rejects Godongwana’s reworked Budget ad ‘unworkable’
This is governing. I do not envy how they will this particular cat. And the pension fund option is definitely a non-starter. In fact all of these options are non-starters. https://t.co/ZbjKY9CJsN pic.twitter.com/tMFFQ68Fz7
— Mvelase
(@MvelaseP) February 25, 2025
“The full details will be known soon … this matter is ongoing, and no final decisions have been made yet,” the source stated.
Reports indicate that during the discussion, Godongwana warned that a budget without VAT increases would significantly limit the funding available for departmental allocations he had planned to announce in his speech.
Meanwhile, Minister in the Presidency, Khumbudzo Ntshavheni, dismissed allegations that she had shared a News24 article on social media about the budget rejection.
As budget discussions continue, South Africa faces uncertainty over how the government will address its fiscal challenges while balancing public needs.
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