Finance Minister Enoch Godongwana postponed Wednesday’s tabling of the budget due to disagreements between parties in the GNU cabinet. File
IN an unprecedented move, the tabling of the 2025 budget by Finance Minister Enoch Godongwana on Wednesday afternoon was postponed until next month.
The postponement was preceded by a last minute of the meeting of the cabinet to receive a briefing from Godongwana amid a reported VAT increase of 2% that would have pushed it to 17%.
Instead of Godongwana tabling his first GNU budget speech in Parliament at 2pm, National Assembly Speaker Thoko Didiza reported that the whips of parties had decided to adjourn the proceedings for a date to be determined after consultation with the Leader of Government Business (LOGB), Deputy President Paul Mashatile.
“We were informed by the LOGB that while today we have been gathered to have Minister of Finance presenting the budget to this august House, that there has not been agreement in terms of parties in executive to actually find one another in proposals of the budget,” Didiza said.
Although parties represented in Parliament had different views , Didiza said ‘there was agreement that if there is no budget to be presented, there is no discussion will be held as there is no item on the agenda’’.
Addressing Didiza, EFF leader Julius Malema demanded that Godongwana present the budget and Parliament could decide whether to adopt it or not.
“There is no government. It has collapsed. It has no capacity to present budget,” Malema said.
MK Party chief whip Mzwanele Manyi said the postponement was an indication of the crisis the country is facing.
“We don’t want to hear rumours. We heard VAT would have been increased by two percent. We heard rumours that the ANC government wanted to impoverish our people. The minister must come here and say what he wanted to say,” he said
UDM parliamentary leader Nqaboyomzi Kwankwa said a proposal from the executive should not be final.
But, Freedom Front Plus parliamentary leader Corne Mulder said the GNU was serious about South Africans and the future.
“We must understand things could happen in terms of when the time is needed for the Ministers to have discussion and for the executive to discus these things,” Mulder said.
BOSA leader Mmusi Maimane raised concerns about the time taken for processing the budget.
“Any time there is a delay, it means that parliament is placed under pressure in not being able to consult with the people, for this is where the people are represented,” he said.
IFP chief whip Nhlanhla Hadebe said: “We view this as a sign of leadership when you need more time for fine tuning some aspects and in requesting Parliament for a postponement.”
DA chief whip George Michalakis said the postponement demonstrated that parliament could no longer be a rubber stamping of policies that could cripple the economy.
“The GNU does not consist of one political party. The DA supports this postponement and hopes the executive will use the opportunity to consider all proposals,” Michalakis said.
ANC deputy chief whip Doris Dlakude said: “We agree with the postponement to allow the executive to finalise those contentious issues they are dealing with in the interest of all South Africans.”
Briefing the media afterwards, Godongwana said the budget will now be tabled on 12 March.
He said the postponement would allow for deliberations to take place and that the 2% VAT increase could not be the only issue.
“You cant have 2% alone without talking about what it is going replace it.”
Godongwana said the given the country’s challenges and priorities, the issue was funding and whether there should be continuation of borrowing and raising taxes.
“There is general agreement in the current environment that we need to find a way to fund our priorities. The debate is the best way of doing it,” he said.
Minister in the Presidency Khumbudzo Ntshavheni, in the same briefing, emphasised that the postponement was not about parties disagreeing on the budget.
“It is cabinet ministers who did not approve the budget and said they need to engage more with the issues,” she said.
Godongwana said the postponement would force a discussion on the trade-offs so the budget could be delivered.
However, Godongwana said budget was not up for negotiation.
“People are to say what they say and in the final analysis, the president makes the policy choices,” he stated.
The writing was on the wall for a postponement of the budget as the cabinet had not met in the morning on Wednesday, as it usually does, and Godongwana had to move forward a closed briefing with the media to 10am after President Cyril Ramaphosa apparently experienced a flight delay.
“I am still going to cabinet. There are nine political parties and there is local government elections. All those things will play themselves out. I don’t know what the cabinet will say.
“It does not stop the delivering of the budget speech,” said Godongwana early on Wednesday, telling the media that Treasury made a presentation on the budget to cabinet two weeks ago and indicated there would tax increases, without disclosing the amount.
The DA has previously threatened not to vote for the budget if its proposals were not accommodated in the budget.
mayibongwe.maqhina@inl.co.za