South Africa's Budget Speech Postponed as VAT Increase Sparks Disputes

The 2025 Budget Speech, which was set to be delivered by Finance Minister Enoch Godongwana today has been postponed for the first time in 30 years of South Africa’s democracy.

The budget speech was delayed due to disagreements among key parties.

Speaker of the National Assembly, Thoko Didiza, confirmed that the delay follows unsuccessful discussions within the executive, particularly over a proposed 2% VAT increase.

In her statement to Members of Parliament, Didiza explained that such a delay had never happened since the end of apartheid.

The lack of consensus on the budget proposals, with the VAT increase being a key point of contention, led to the decision to postpone the speech.

The set date for the Budget Speech will now be on March 12, to allow Godongwana and the Treasury time to resolve these key issues.

This new date is seen as essential to finalising the budgetary matters before they are presented to the public.

And while there have been concerns regarding the uncertainty surrounding the new date and its potential impact on the markets, Didiza reassured the public that, after carefully considering the views of all parties, the postponement is in the best interest of the country.

“We will not compromise on our timeline for handling this budget,” Didiza emphasised, reiterating Parliament’s commitment to managing the process responsibly despite the delay.

Listen to the Pre-Budget Speech Podcast HERE