In an unprecedented move, the 2025 Budget Speech scheduled for 19 February has been cancelled until further notice.<\/p>\n\n\n\n
This follows a disagreement between parties within the Government of National Unity (GNU) on the proposals within the budget.<\/p>\n\n\n\n
The executive decided to adjourn and postpone the National Assembly’s sitting to allow enough time to reassess the budget.<\/p>\n\n\n\n
The budget is now expected to be delivered sometime in March.<\/p>\n\n\n\n
According to the statements delivered at the sitting, the main point of contention was proposed tax hikes, on which parties within the GNU did not agree.<\/p>\n\n\n\n
It was widely reported ahead of the scheduled speech that Value-Added Tax (VAT) was to be hiked by two percentage points, taking it from 15% to 17%.<\/p>\n\n\n\n
This was corroborated by a leaked 2025 tax summary document for SARS, which showed the hike.<\/p>\n\n\n\n
While adjustments to the zero-rated tax basket would have been made, parties\u2014primarily the Democratic Alliance\u2014took great exception to this.<\/p>\n\n\n\n
President Cyril Ramaphosa called an emergency cabinet meeting ahead of the address to give Godongwana an opportunity to address the GNU parties on the proposals.<\/p>\n\n\n\n
The postponement of the 2025 Budget was met with mixed reactions. However, most parties agreed that a date should be set for it.<\/p>\n\n\n\n
Many members of parliament criticized the executive as incompetent, highlighting it as a low point in South Africa\u2019s democracy.<\/p>\n\n\n\n
The 2025 budget is the first in South Africa’s democratic history to be compiled by a non-majority government.<\/p>\n\n\n\n
Following the 2024 national election, the ANC lost its majority, securing only 40% of the vote. This led to the creation of the GNU.<\/p>\n\n\n\n
While the GNU has inspired positive sentiment thanks to its wider representation of South Africa’s interests, it has not been without conflict.<\/p>\n\n\n\n
Parties have butted heads over several key policies and laws that had been championed by the ANC during its majority rule.<\/p>\n\n\n\n
The National Health Insurance Act, signed before the 2024 elections, has been a major sticking point with the DA and other parties.<\/p>\n\n\n\n
But two laws signed after the formation of the GNU\u2014the Basic Education Laws Amendment (BELA) Act and the Expropriation Act\u2014have caused even bigger problems within the government.<\/p>\n\n\n\n
The Expropriation Act in particular has drawn unwanted attention on a global scale, damaging South Africa’s relations with one of its biggest trade partners, the United States.<\/p>\n\n\n\n
This perceived instability\u2014likely exacerbated by the cancellation of the Budget Speech due to disagreements\u2014could be seen as counter-productive to the GNU’s stated goals of driving economic growth.<\/p>\n","protected":false},"excerpt":{"rendered":"
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