Finance Minister Enoch Godongwana announces the date for the third Budget speech, highlighting the impact of recent VAT discussions and the importance of coalition politics in South Africa..
Image: Picture supplied
Finance Minister Enoch Godongwana announced on Wednesday in a media briefing that the third Budget speech will take place on 21 May.
The announcement comes following the 0.5% VAT reversal announced last week by the Treasury, which was proposed in the March 2025 Budget with the matter being taken to court by the Democratic Alliance (DA) and Economic Freedom Fighters (EFF).
Godongwana also announced that he and the Treasury would not be taking any questions regarding the preparation of the third budget speech until 21 May.
Godongwana said that the Budget of 12 March 2025 and the proposed VAT increase sparked rigorous debate.
“This is welcomed in a healthy democracy. Today there is clarity that VAT will remain at 15%. This decision was shaped not only by political debate but by the voices of the South African people. When people speak we must listen. I'm encouraged by the passion shown, and it reflects the seriousness with which we approach the hard choices needed to place our finances on a sustainable path.”
Godongwana added that we are all new in South Africa to what is called coalition politics.
“There are lessons to be learnt by cabinet, legislature and ourselves. I'm pleased that we have agreed that we will balance the budget without raising VAT while protecting vital sectors such as education, health, and social grants,” he said.
Godongwana said that the National Treasury has already commenced work on developing a new fiscal framework that will maintain their trajectory toward debt stabilisation, a crucial element in strengthening our public finances.
“The revised budget will adhere to all established technical processes and consultations as set out in the Money Bills and Related Matters Act. This includes formal consultations with the Financial and Fiscal Commission, thorough consultations with all political parties within the Government of National Unity, as well as Cabinet approval before presentation to Parliament.”
BUSINESS REPORT