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Godongwana Sets New Date for South Africa’s Budget 2025 Amid GNU Disagreements
Finance Minister Enoch Godongwana has confirmed that South Africa’s Budget 2025 will be tabled on March 12, 2025, following an unprecedented delay caused by deliberations within the Government of National Unity (GNU).
The budget speech was initially scheduled for February 19, 2025, but was unexpectedly cancelled 20 minutes after it was supposed to begin. This marked the first time in South Africa’s democratic history that a national budget presentation was called off at the last minute. The delay highlights ongoing disagreements within the GNU over crucial fiscal policies, particularly a proposed two percentage point increase in Value-Added Tax (VAT) to 17%.
Why Was the Budget Speech Delayed?
According to National Assembly Speaker Thoko Didiza, the budget was postponed because key GNU parties could not reach an agreement on several fiscal proposals. While the VAT hike was a major sticking point, Godongwana emphasized that other budgetary allocations and trade-offs also needed further discussion.
“The budget must strike a balance between public interests, economic growth, and financial sustainability,” said Godongwana. The Cabinet collectively agreed that additional time was required to fine-tune the fiscal plan before tabling it in Parliament.
Legal Considerations for the Budget Delay
South Africa’s new financial year starts on April 1, 2025, and while the law requires the national budget to be tabled before then, it does make exceptions for extraordinary circumstances. The finance minister has the authority to present the budget after the new financial year begins, should it be deemed necessary.
Political Fallout and Criticism
The unprecedented budget delay has drawn sharp criticism from opposition parties and economic analysts. Many members of Parliament have labeled the move as a failure of governance, arguing that the GNU’s internal conflicts have undermined confidence in the executive’s ability to manage the country’s finances.
Minister in the Presidency Khumbudzo Ntshavheni defended the decision, stating that disagreements over the budget were widespread and not limited to one political party. She explained that even within the ruling African National Congress (ANC), there were differing opinions on critical fiscal decisions.
“Because the special Cabinet meeting started late, we requested that the Deputy President ask the National Assembly for time to debate,” said Ntshavheni. “We have agreed on March 12.”
What to Expect on March 12
As the new budget date approaches, South Africans will be watching closely to see whether the GNU can resolve its internal disputes and present a cohesive financial plan. The VAT increase proposal will likely remain a contentious issue, with the possibility of alternative revenue-generating strategies being explored.
For now, all eyes are on March 12, 2025, as the date when South Africa’s economic direction for the year ahead will finally be revealed.
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