BY: Saneliso Mlambo
In an unprecedented move, National Assembly Speaker Thoko Didiza announced the postponement of South Africa’s 2025 Budget Speech, originally scheduled for today. The decision stems from a lack of consensus among parties within the Government of National Unity (GNU) regarding key budgetary provisions, notably a proposed increase in Value-Added Tax (VAT).
Reports indicate that Finance Minister Enoch Godongwana intended to propose a VAT hike from 15% to 17% to address fiscal challenges. However, this proposal met resistance from several GNU parties, including the Democratic Alliance (DA) and the Economic Freedom Fighters (EFF), who expressed concerns about the potential financial strain on citizens.
Speaker Didiza conveyed that, following discussions among party chief whips, a decision was reached to postpone the budget presentation to allow for further deliberations and consensus-building. She emphasized the importance of presenting a unified budget that reflects the collective agreement of all coalition partners.
The postponement has elicited varied reactions from political leaders. EFF leader Julius Malema criticized the delay, suggesting it reflects a collapse of executive function and denies Parliament the opportunity to debate and adopt the budget as scheduled.
The postponement has also impacted financial markets, with the rand declining over 0.8% since the markets opened, and the local bourse trading in the red, reversing its all-time high of over 89,000 index points.
As of now, a new date for the Budget Speech has not been announced. The postponement underscores the complexities inherent in coalition governance and highlights the challenges of achieving consensus on critical fiscal policies.