NEW DATE SET FOR SA’S BUDGET SPEECH

After the failed tabling of the national budget vote speech last month, the government has announced that the new date is now March 12, 2025.

Difference of opinion among various parties in the Government of National Unity (GNU) had fiercely argued and disagreed over the imposition of increased VAT (Value Added Tax), some claiming it would help the poor the most.

It is unclear what the revised stance will be when Finance Minister Enoch Godongwana delivers his annual budget speech. In a media statement issued by the Government Communications and Information Services (GCIS), it was revealed that a special meeting of the Cabinet was convened on Monday, 03 March 2025 to consider inputs by members of the Cabinet into best possible options, under the circumstances, to fund the Budget of 2025/26 financial year and the medium term.

This follows another special Cabinet meeting on Monday, 24 February 2025, that allowed broad discussions on the country’s fiscal constraints and the need for rapid implementation of the three key priorities of the 7th administration under the Government of National Unity, the statement read.

At the meeting of 24 February 2025, President Cyril Ramaphosa set-up a team of Ministers led by the Deputy President Paul Mashatile to work with the Minister of Finance and his National Treasury team to consolidate cabinet inputs for further consideration.

“The team led by Deputy President Mashatile and supported by National Treasury tabled a variety of options that were considered by Cabinet. In compliance with the provisions of section 27 of the Public Finance Management Act (1 of 1999), Cabinet mandated the Minister of Finance to select from the discussed options and fund the Budget in a manner that takes into consideration:

(a) The fiscal constraints of the country.
(b) Mitigates the impact on the poor and middle-income households; and,
(c) Supports economic growth,” read the GCIS statement.

With the conclusion of the Cabinet input process into the Budget, the Minister of Finance and National Treasury are now set to finalise the budget and the table it before parliament on the 12th of March 2025, according to the media statement.