2025 Budget Speech Postponed Amid Government Disagreement
The highly anticipated 2025 Budget Speech, originally set for 19 February, has been postponed due to internal disagreements within the Government of National Unity (GNU).
The decision follows a dispute among GNU parties over key budget proposals, prompting the executive to adjourn the National Assembly’s sitting to allow more time for reassessment. The budget is now expected to be presented in March.
The primary point of contention was the proposed tax increases, particularly a planned two-percentage-point hike in Value-Added Tax (VAT) from 15% to 17%.
Reports of the increase surfaced ahead of the speech and were later confirmed by a leaked 2025 tax summary document from SARS.
Although adjustments to the zero-rated tax basket were proposed, opposition—mainly from the Democratic Alliance—strongly rejected the VAT hike.
In response to the growing tensions, President Cyril Ramaphosa convened an emergency cabinet meeting before the scheduled address, allowing Finance Minister Enoch Godongwana to engage with GNU parties on the proposals.
This budget marks a historic shift, as it is the first in South Africa’s democratic era to be crafted by a non-majority government.
Following the 2024 national election, the ANC lost its outright majority, securing just 40% of the vote, which led to the formation of the GNU.
While the coalition has been praised for broadening political representation, internal conflicts continue to challenge its stability.