2025 budget speech postponed amid government dispute
South Africa's highly anticipated 2025 Budget Speech has been postponed indefinitely after deep divisions emerged within the Government of National Unity over proposed tax hikes.
In an unprecedented move, South Africa’s 2025 Budget Speech, initially scheduled for 19 February, has been indefinitely postponed to March.
The decision comes after a breakdown in discussions among parties within the Government of National Unity (GNU), particularly over proposed tax hikes.
The central point of contention was the suggested increase in the Value-Added Tax (VAT) rate from 15% to 17%.
Leaked documents indicating the hike, along with adjustments to the zero-rated tax basket, triggered significant opposition, especially from the Democratic Alliance (DA).
In response, President Cyril Ramaphosa convened an emergency cabinet meeting, allowing Finance Minister Enoch Godongwana to address concerns within the GNU.
The budget, the first in South Africa’s democratic history to be crafted by a coalition government, will now be reassessed, with a new presentation expected in March.
The decision highlights ongoing tensions within the GNU, formed after the ANC’s loss of its parliamentary majority in the 2024 elections.
This historic budget delay underscores the complexities of governing under a coalition system.
