(The Post News)– The South African government has confirmed that Finance Minister Enoch Godongwana will table the budget on March 12. The date is now set in stone despite last week’s delay caused by political disagreements over a proposed VAT increase.
The proposed VAT hike, from 15% to 17%, is the centrepiece of this year’s budget. It aims to raise an additional R58 billion in revenue to address pressing fiscal challenges. However, the proposal has sparked debates, raising concerns about the potential burden on low-income households.
According to the SABC News, the Minister in the Presidency, Khumbudzo Ntshavheni, announced in Cape Town that the timeline would remain unchanged. “The 12th of March is cast in stone,” she assured. Ntshavheni emphasised that while the budget is a collective product of the Cabinet, the Finance Minister is responsible for tabling it. She highlighted that market-sensitive information must be handled carefully and within the Cabinet’s mandate.
To finalise all details, the Cabinet and Treasury will hold a special meeting on Monday. This session aims to address the country’s fiscal environment comprehensively. Ntshavheni stated that the Cabinet is committed to aligning the budget with national priorities while allowing the finance minister the necessary autonomy.
The VAT hike proposal remains the most contentious aspect of the budget. While it seeks to bolster government revenue, critics worry about its impact on already strained households. The balancing act between raising funds and minimising socioeconomic harm will undoubtedly be a key focus in the final stages of the budget process.
As the March 12 deadline approaches, all eyes will be on how the government navigates these challenges and delivers a budget that addresses South Africa’s economic realities. This fiscal moment could shape the country’s direction for years to come.
According to reports, the Cabinet is still working on the budget, and a special meeting will be held on Monday, Minister in the Presidency Khumbudzo Ntshavheni said on Thursday. Speaking to the media on Wednesday, Ntshavheni stated that the Cabinet decided to postpone the 2025 Budget Speech to March 12 because it wanted to address the nation’s budgetary difficulties in a limited fiscal climate.
Ntshavheni also asserted that the Cabinet “assures” South Africans that discussions on the 2025 budget are ongoing to discover the best means to support their financial commitments while also ensuring that the budget reflects the ambitions of all South Africans.
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