Finance minister Enoch Godongwana says he will table the third attempt for the 2025 budget on May 21 after months of discord over his VAT hike proposal.
Speaking to reporters in Pretoria on Wednesday afternoon, the minister said he sent a formal request to National Assembly speaker Thoko Didiza to allow the budget to be tabled in mid-May.
“The ministry remains committed to transparent communication throughout the process and will provide further updates as they become available. We owe it to the hardworking citizens of SA to be open and transparent about how tax money is spent. The budget that will be tabled on May 21 will aim to maintain the principles, ” he said.
Godongwana has made two attempts to table the 2025 budget. In February he planned to propose two VAT hikes for 2025 and 2026, but resistance to the proposal from parties in the government of national unity (GNU) and parliament forced the minister to delay the budget and return in March.
He tabled a March budget that allowed for two 0.5 basis point VAT increases. While the second version of the budget was tabled, the DA and the EFF challenged its passage by the standing committee on finance and the VAT Act at the Western Cape High Court as unconstitutional.
Godongwana said the revised budget will adhere to all established technical processes and consultations as set out in the Money Bills and Related Matters Act, consultations with the Financial and Fiscal Commission and all political parties within the GNU.
“Until the new budget is passed, government services will continue to be funded under the Public Finance Management Act. This allows spending of up to 45% of last year’s budget during the first four months, and up to 10% for each month after that.”
He said while the National Treasury waits for the 2025 Division of Revenue Act to be passed, funding for provinces and municipalities will continue under the 2024 act, allowing transfers of up to 45% of their allocated funds.
During the briefing, Godongwana was asked if he would resign or if he expected President Cyril Ramaphosa would remove him after the chaotic wrangling around the budget.
“That decision does not lie with me; it lies with the president — but I am mindful the president has been a part of the process. I don’t think that is a question for me.”
He said if any credibility issues arise for the markets, it will not arise based on the VAT hike reversal but on the final product tabled in parliament later this month.
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