Zuko Komisa
Finance Minister Enoch Godongwana is set to deliver his 2025 National Budget Speech today at 2:00 PM, marking his third attempt to present the budget. This highly anticipated address comes after two previous postponements and considerable public backlash over proposed VAT increases.
The nation will be keenly watching to see how Godongwana plans to address a R60 billion revenue shortfall without placing further strain on already struggling South Africans. The Government of National Unity (GNU) has faced instability since February, when initial budget plans were delayed due to calls for a 2% VAT hike.
A subsequent proposal for a 0.5% increase was narrowly passed in March but ultimately scrapped in April following widespread public outcry and pressure from opposition parties like the EFF and DA.
With the VAT rate remaining at 15%, Godongwana now faces the challenge of finding alternative funding methods for crucial expenditures such as social grants, public wages, and infrastructure projects, all while working to reduce the country’s debt-to-GDP ratio, which currently stands at 74%.
Equal Education reports that over 23,000 education posts have been eliminated, leading to significant detrimental effects on South African classrooms due to austerity measures.
The organization, through insights from Section 27 Budget Analyst Mathsidiso Lencoasa who spoke to Phemelo Motene on Point of View, emphasizes that the upcoming “Budget 3.0” presents a critical opportunity for the nation’s democracy to finally challenge the National Treasury’s previously harmful fiscal decisions.
Listen to the full conversation here:
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