Budget Speech postponed until March 12

 

The 2025 Budget speech was postponed to 12 March 2025. The Minister of Finance Enoch Godongwana was expected to deliver the budget speech at 2PM at Parliament 19 February 2025.

 

Before delivering the Budget speech the Minister was set to meet with cabinet for their approval of the budget. Cabinet disapproved of the alleged 2% increase in VAT from 15% to 17% and a number of other factors. The disagreement among parties in the Government of National Unity were mainly about the increase in taxes.

 Godongwana stated in a media briefing that the Budget speech will be postponed to 12 March 2025 for further evaluation and changes that will be made because of cabinet’s disapproval.

 A number of ministers and party leaders criticised the Minister of finance’s choices. City of Cape Town Mayor, Geordin Hill-Lewis, said the postponement is a victory for the poor.

 Due to the shock South Africans received about the possible 2% VAT increase the Rand weakened yesterday after the national budget.

 The currency traded at R18.56 against the US dollar it decreased to 0.9 percent from its previous close.

 This also caused the worst selloff in South African government bonds since December, with the 2052 dollar bond trading about one cent lower to 89.20 cents on the dollar.

 Although the scheduling of the 2025 budget was scheduled for release at 2PM on the 19th of February a postponement was needed to allow for further deliberations to take place on the budget by cabinet.

 Godongwana said “The cabinet is united in the view that the budget must strike a balance between the interests of the public, economic growth, and fiscal sustainability. Furthermore the budget is produced and presented before the National Assembly according to rules outlined in the Public Finance Management Act”.

 The Budget speech will take place on 12 March 2025.

 Done by: Shaneca Cupido