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Ramaphosa’s 2025 Budget: A Focus on Growth, Development, and Poverty Reduction
President Cyril Ramaphosa has reaffirmed that the 2025 Budget is central to addressing poverty, inequality, and driving economic growth in South Africa.
In his weekly address to the nation, following Parliament’s adoption of the 2025 Fiscal Framework and Revenue Proposals, Ramaphosa described the budget as a tool to foster inclusive growth despite current economic constraints. He emphasized its role in supporting development, reducing the cost of living, and creating a capable, ethical state.
“The 2025 Budget aims to reduce poverty, drive inclusive growth, and address the high cost of living. It’s designed to uplift South Africans’ material conditions while reinforcing government’s commitment to development,” he said.
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The budget, passed in Parliament with a narrow majority of 192 votes to 182, prioritizes essential social services. However, political disagreements remain, with the DA and EFF pledging to challenge proposed VAT increases in court. Ramaphosa highlighted that 61% of the next three years’ spending will go towards social initiatives, including healthcare, education, housing, and social grants. The government will also extend the Social Relief of Distress grant, a vital tool in poverty alleviation.
In healthcare, investments will target clinics, community health centres, and recruitment of medical personnel. Similarly, substantial funds will support frontline services such as education, policing, and emergency services. On education, Ramaphosa stressed the importance of teacher training, bilingual education, and early childhood development. He emphasized that these initiatives are crucial for community development and skill-building for the economy. The budget also focuses on job creation through public employment programmes, supporting small businesses, and incentivizing youth employment through tax adjustments.
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To stimulate economic growth, Ramaphosa announced a R1 trillion allocation for infrastructure development over the next three years. This will fund road maintenance, electricity transmission lines, water and sanitation projects, and the revitalization of rail networks. Additional funding will support key sectors like automotive, business process outsourcing, and electric vehicle production, with the aim of boosting growth. Ramaphosa stressed that these initiatives are vital for the sustainability of social expenditure. In light of the challenging economic environment, both locally and globally, the budget seeks to stabilize public finances, reduce national debt, and improve municipal infrastructure and service delivery.
Ramaphosa concluded that the 2025 Budget aligns with the government’s Medium Term Development Plan, focused on fostering rapid, inclusive growth and strengthening state capacity.
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Sourced:IOL
