Finance Minister Enoch Godongwana is advocating for a more consultative and structured approach to the national budget process, in response to recent challenges posed by the formation of the Government of National Unity (GNU) and coalition dynamics.
During a media briefing held on Wednesday, Godongwana announced that the revised national budget will be tabled on 21 May, featuring a new fiscal framework that does not include the previously proposed increase in value-added tax (VAT). The decision follows a contentious debate over the VAT hike, which exposed tensions among GNU partners and highlighted the limitations of the current budgeting approach.
Godongwana described the recent budget planning as disjointed and fraught with disagreements, particularly within the coalition structure. These challenges have prompted the National Treasury to reconsider how future budgets are formulated and negotiated.
A new approach is now being planned, one that will account for the complexities of multi-party governance and enable early and structured engagement among key stakeholders. This reformed process is expected to begin in September, well ahead of the Medium-Term Budget Policy Statement (MTBPS) in October — a critical milestone that lays the foundation for the February budget.
Until the revised budget is formally adopted by Parliament, government operations and essential services will continue to be funded under Section 29 of the Public Finance Management Act (PFMA), which permits temporary financial management in the absence of an approved budget.
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