The Budget 2025 will be re-tabled, for the third time, on Wednesday, 21 May 2025.
This was confirmed by Finance Minister, Enoch Godongwana, during
a media briefing on Wednesday afternoon.
COURTESY: X - @Treasury_RSAThis comes as Godongwana's recent announcement and
subsequent request to the Speaker of the National Assembly to maintain the
Value-Added Tax rate at its current level of 15%, reversing the previously
proposed 0.5 percentage point increase presented in the 12 March budget.
‘’This comprehensive review will include the Fiscal
Framework, the Appropriation Bill, Division of
Revenue Bill, and already tabled Rates and Monetary Amounts and Amendment
of Revenue Laws Bill. The revised budget
will adhere to all established technical processes and consultations as set out
in the Money Bills and Related Matters Act.
This includes formal consultations with the Financial and Fiscal
Commission, thorough consultations with
all political parties within the Government of National Unity as well as
Cabinet approval before presentation to
Parliament,’’ said National Treasury in a statement.
‘’Until the new budget is passed, government services will
continue to be funded under section 29 of
the Public Finance Management Act. This allows spending of up to 45 per
cent of last year’s budget during the first four months, and up to 10 per cent
for each month after that. While we wait for the 2025 Division of Revenue Act
to be passed, funding for provinces and
municipalities will continue under the 2024 Act, allowing transfers of
up to 45 per cent of their allocated
funds,’’ it added.
This will be the third time this year that the budget will
be tabled.
‘’While the postponement of the budget's passage is not
ideal, the circumstances leading to this
decision have highlighted the importance of meaningful engagement on
fiscal matters. This situation has
provided a valuable opportunity for all stakeholders—citizens, Members of Parliament, labour organisations, and civil
society—to thoroughly engage with the complex challenge of achieving fiscal
sustainability while promoting economic growth and protecting essential public services within very limited
resources.,’’ said National Treasury.
According to the National Treasury, it has already
commenced work on developing a new fiscal framework that will maintain trajectory
toward debt stabilization.
This process includes: Revising economic assumptions using
the latest available data; Generating a updated fiscal projects; Recalculating
revenue projections and tax implications; Determining appropriate borrowing
strategies; and Consolidating these elements into a coherent and sustainable
fiscal framework.
‘’We owe it to the hardworking citizens of South Africans
to be open and transparent about how tax money is spent. The budget that will
be tabled on May 21 will aim to maintain these principles,’’ concluded National
Treasury.
Done by: Mitchum George
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