Cabinet says it has postponed the Budget Speech because they have not finalised it and therefore could not allow Finance Minister Enoch Godongwana to table it to the nation, dismissing claims that it was about the ANC and DA.
Presidency Minister and Cabinet spokesperson Khumbhudzo Ntshavheni denied claims that the Budget Speech was moved to March because of party politics over the proposed 2% VAT increase.
The increase would shoot up VAT to 17%.
Addressing an urgent briefing called to explain why it was postponed, Ntshavheni said the postponement was more about the funding mechanism and not about VAT, adding that it was a cabinet decision, not a party-sided one.
“This is not a one-party issue … part of why we requested a delay as cabinet is that we want to meet and have a substantive discussion on the budget.
“So, remove the notion of the party politics and some people claiming otherwise,” Ntshavheni said, stating that they could also be “naughty” and release the names of people who participated in the motion.
“So, let’s not go there. It’s the cabinet ministries who did not approve the budget as it was being tabled and said they needed more time to engage on it.”
In the briefing, Finance Minister Enoch Godongwana said he would deliver a “new” budget speech next month.
Godongwana informed journalists that the unprecedented postponement is due to the need for cabinet deliberations before the proposed increase can be presented to the National Assembly.
He said the cabinet shared a view that the budget must be balanced between public interest, economic growth as well as fiscal sustainability.
However, reports indicated that President Cyril Ramaphosa had called an emergency Cabinet meeting just before the budget could be tabled.
The DA also threated to reject the budget over the increase.
The budget was reportedly postponed because the ANC was at loggerheads with the DA on the proposed VAT increase.
IOL Politics
Get your news on the go, join the IOL News WhatsApp channel.