Political parties in parliament expressed mixed reactions to Finance Minister Enoch Godongwana’s Budget Speech on Wednesday.
Government of National Unity (GNU) partners the ANC and DA were supportive while the official opposition the MK Party, EFF and ATM was firm against.
Godongwana presented the 2025 Budget Speech on Wednesday at 2pm in the National Assembly sitting in the Cape Town International Convention Centre (ICC).
At the same plenary, Godongwana also introduced the Appropriation Bill and tabled the 2025 Division of Revenue Bill, which parliament will process in the following months.
Today’s Budget Speech was third time lucky for Godongwana after he aborted two previous attempts to present his budget for the 2025-2026 financial year in February and March.
Budget will ensure economic growth
ANC national spokesperson Mahlengi Bhengu-Motsiri said the budget will ensure there is economic growth and job creation in South Africa.
“Through this budget, South Africa remains firmly on the path of economic transformation and growth. This is a developmental, transformative people’s budget.
“The budget prioritises areas that are aligned with our national development objectives, including education, health, infrastructure, housing, early childhood development, public transport, social wage, and arts and culture. These investments underscore the Budget’s developmental and transformative nature, aimed at improving the quality of life for all South Africans,” said Bhengu-Motsiri.
DA MP Mark-John Burke said Godongwana’s is a budget the party “should be able to support”.
Focus on infrastructure development
“The budget presented to us is a workable version. We should be able to support this budget. Our country has an expenditure problem. I am excited that the minister (Godongwana) announced a spending review. We need an aggressive focus on infrastructure development. This was announced now,” said Burke.
MK Party national spokesperson Nhlamulo Ndhlela said the budget is anti-poor.
“This budget is an indictment against the poor. The budget was absent as its absent president [Cyril Ramaphosa]. The increase to the general fuel levy is meant to replace the VAT increase, which was scrapped. This government continues debting our people and costing our people in the pocket.
“This budget is a punishment to the poor. It gives relief to the rich. There is nothing delivered by this minister,” said Ndhlela.
EFF leader Julius Malema said the budget shows that the ANC has no plan for economic growth and job creation.
“The ANC is stuck. They have no believable plan to grow the economy and create jobs. This is an austerity budget. This is not a pro-poor budget. We do not support it. The minister should increase corporate tax, inheritance tax and luxurious land tax… Government should tax the rich and deal with illicit financial flows,” said Malema.
Levy will make people poorer
ATM leader Vuyo Zungula said the increase to the general fuel levy will make South Africans poorer.
“The increase in the fuel levy is another way to make South Africans poorer. This fuel levy increase will lead to the cost of living increasing, and this is going to stretch South Africans financially… The budget of today does nothing to fundamentally improve the lives of citizens,” said Zungula.
In his speech, Godongwana had announced an inflation-linked increase to the general fuel levy.
Godongwana said this is the first fuel levy increase in three years.
“In this difficult environment, it remains vital that we still take actions to increase revenue to protect and bolster frontline services, while expanding infrastructure investments to drive economic activity.
“To this end, this budget proposes an inflation-linked increase to the general fuel levy. For the 2025/26 fiscal year, this is the only new tax proposal that I am announcing. This is the first fuel levy increase in three years. It means from the fourth of June this year, the general fuel levy will increase by 16 cents per litre for petrol, and by 15 cents per litre for diesel,” said Godongwana.
Social grant increase is good news
Cosatu parliament coordinator Matthew Parks said: “There are some things quite good [in the budget]. The scrapping of the VAT hike, a double inflation increase for social grants, and investment in the infrastructure to grow the economy and create jobs are good. This budget is not as bad as we feared.
“Some parts of the budget are disappointing. There is no adjustment to the SRD (social relief of distress) grant. There are no interventions on local government….”
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