Finance minister Enoch Godongwana said the 2025 Budget Speech has been postponed to March 12 in order to allow for cabinet ministers to have further discussions about it.
Godongwana said cabinet has not finalised the budget due to further deliberations that need to take place between cabinet ministers.
GNU partners at the heart of postponement
He said the main reason why the Budget Speech was not delivered was because cabinet ministers in the government of national unity (GNU) are “grappling” with what is the best way to fund government’s challenges and priorities.
He was speaking on Wednesday at a media briefing at the Imbizo Media Centre in parliament.
Godongwana was joined by Minister in the Presidency Khumbudzo Ntshavheni. They were also joined by National Treasury director-general Duncan Pieterse.
Deputy Finance Ministers David Masondo (ANC) and Ashor Sarupen (DA) were not seen at the media briefing.
“As cabinet, we have not finalised the budget. We could not proceed to the House (parliament) for the minister to table the budget,” said Ntshavheni.
Further deliberations on budget to take place
“A postponement is needed to allow for further deliberations to take place on the budget. Further discussions will take place for a new, amended budget to be presented on the 12th of March 2025,” said Godongwana.
“What we are grappling with is not the 2% [VAT increase] per sê. We are grappling with the government’s challenges and priorities and how do we fund them. The debate is around whether to borrow, cut expenditure or raise tax in order to fund our challenges and priorities. We are trying to find a way, the best way to fund our priorities,” said Godongwana.
Meanwhile, DA leader John Steenhuisen said the postponement of Godongwana’s Budget Speech today “is a victory for the people of South Africa, as it prevents the implementation of a 2% VAT increase that would have broken the back of our economy”.
DA’s opposition to VAT hike
“The postponement resulted from the DA’s resolute opposition to the ANC’s plan to hike VAT at a time when millions of South Africans are already suffering under a cost of living crisis. The last-minute postponement came about because of the failure by the ANC. And specifically Finance Minister Enoch Godongwana’s failure to engage meaningfully with the alternative proposals tabled by the DA.
“Following our defeats of the ANC’s plan to hike VAT, we will now fight with the same vigour to introduce a new budget. One …that is anchored in growing the economy, rather than increasing taxes or debt. This historic victory demonstrates the DA’s muscle within the government of national unity. For the first time ever, the ANC was prevented from tabling an anti-growth budget. Now is the time to replace a failed ANC VAT budget, with a brand new GNU growth budget,” said Steenhuisen.
Earlier on Wednesday, Speaker of Parliament’s National Assembly Thoko Didiza informed members of parliament about the unprecedented postponement of the 2025 Budget Speech.
First postponement since 1994
The postponement of the Budget Speech has occurred for the first time since the dawn of democracy in 1994.
Gondongwana was set to deliver the 2025 Budget Speech at 2pm at the Nieuwmeester Parking (The Dome). The venue is parliament’s temporary sitting chambers in Cape Town.
At around 2.20pm, Didiza addressed members of parliament. She informed them that the 2025 Budget Speech presentation as been postponed to a date in March.
“We have decided to adjourn the proceedings for a date to be determined by the programming committee. Before we started with today’s session, we were informed by the leader of government that while today we gathered to have the minister of finance to present the budget, there have not been agreements in terms of parties in the executive to actually find one another in proposals of the budget.
New date in March
“The media has been reporting about proposed increases in the budget. And cabinet decided not to come and do a budget speech presentation. This is to allow themselves (cabinet) enough time to relook at the budget and come back to this house in March to present the budget,” said Didiza.
