Finance Minister Enoch Godongwana has announced that the government will make a third attempt to table the National Budget on 21 May 2025, following earlier setbacks. This announcement came during a media briefing in Pretoria, where the Minister provided clarity on recent fiscal changes and the government’s commitment to crucial public services.
Last week, National Treasury revealed that it would reverse its proposed 0.5 percentage point increase in Value Added Tax (VAT), a decision that follows considerable backlash from various political parties. The proposal drew significant opposition, reflecting the concerns of many South Africans regarding the potential impact on their cost of living amid an ongoing economic crisis.
During the briefing, Godongwana reiterated the government’s dedication to a strategic path that focuses on strengthening fundamental sectors such as health, education, and social services. “Our aim is to create a sustainable financial framework that supports the most vulnerable and enhances public service delivery,” he stated emphatically.
The initial VAT hike was intended to address a staggering R75 billion revenue shortfall, a crisis that has alarmed financial analysts and citizens alike. However, the Western Cape High Court’s recent intervention to halt the VAT increase has left the government exploring other avenues to navigate the fiscal challenges ahead.
In light of the criticism and intense scrutiny he has faced, Godongwana stressed that he has no intention of resigning from his position, clarifying that the ultimate decision regarding administrative changes would rest with President Cyril Ramaphosa. “I remain committed to my role, and it is the President who plays the final arbiter in these matters,” he noted, a statement that may calm speculation regarding instability within the Cabinet.
As the government prepares for the postponed tabling of the National Budget, all eyes will be on new proposed solutions that could mitigate the financial pressures faced by the country. Stakeholders across various sectors are eagerly awaiting the government’s plans, hoping for innovative and sustainable strategies to ensure economic stability.