Finance Minister Enoch Godongwana is delivering his highly anticipated budget speech, marking a significant moment for South Africa's economic landscape.
The 2025 Budget will be historic not for one but two significant reasons. The first is the Government of National Unity (GNU) embodying democracy in action, the first time the Budget has been delayed in South Africa’s post-apartheid history.
The second is how the delay came about through disagreements within the GNU, the first real example of internal discord causing delays or changes in government behaviour.
After last month's postponement over a VAT increase, the speech comes at a critical time as the country faces various economic challenges.
With a keen focus on fiscal discipline, job creation, and infrastructure development, Godongwana will outline the government's plans to steer South Africa toward recovery, while addressing the ongoing pressures of public debt and unemployment.
Godongwana has faced backlash from advocacy group Black Sash who accused him of using" the SRD grant as leverage to gain acceptance for a VAT hike.
This follows Godongwana's statement that there would be no need for a VAT increase if the COVID-19 Social Relief of Distress (SRD) grants were reduced.
Meanwhile, the DA has also made it clear that it will not stand for a VAT hike.
IOL