South Africa\u2019s rand and bonds weakened after parliament delayed the presentation of the annual budget, an unprecedented decision that highlighted increasing strains in the nation\u2019s coalition government. <\/p>\n\n\n\n
\u201cThere has not been agreement in terms of parties in the executive to find one another in proposals of the budget,\u201d Speaker of Parliament Thokozile Didiza told lawmakers on Wednesday.<\/p>\n\n\n\n
Finance Minister Enoch Godongwana had been scheduled to present his budget at 14h00.<\/p>\n\n\n\n
Earlier, the Democratic Alliance said it would hold a briefing later on Wednesday to discuss its \u201cresolute position\u201d on the budget process after reports that the government is considering increasing taxes.<\/p>\n\n\n\n
An increase of as much as a two percentage points increase in the VAT rate, currently at 15%, was budgeted for.<\/p>\n\n\n\n
The government held an urgent media briefing at 15h00 to address the delay. It set a new date for the 2025 budget on 12 March.<\/p>\n\n\n\n
The rand extended an earlier decline, weakening as much as 1% to 18.5892 per dollar by 14h32. The yield on benchmark 2035 government bonds climbed 11 basis points to 10.63%.<\/p>\n\n\n\n
It\u2019s the first time a budget speech has been postponed since at least the end of apartheid in 1994.<\/p>\n\n\n\n
Journalists were presented with the embargoed budget documentation at 06h00 on Wednesday, with release slated for when the minister was due to start speaking.<\/p>\n\n\n\n
The 10-party coalition government was formed in June last year, a month after the African National Congress lost the parliamentary majority for the first time since it took power in 1994.<\/p>\n\n\n\n
While the alliances agreed to prioritize growing the economy, its members have clashed over education policy, a new land expropriation law and the ANC\u2019s plans to introduce a national health insurance scheme.<\/p>\n","protected":false},"excerpt":{"rendered":"
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