2025 budget postponed due to disagreement within GNU

In a bizarre move, the presentation of the 2025 budget, scheduled for 2pm in the National Assembly, has been postponed indefinitely.

This comes about due to political parties in the Government of National Unity being unable to reach an agreement on what is contained in the budget.

DA leader John Steenhuisen said the last-minute postponement was because of the failure by the ANC and finance minister Enoch Godongwana “to engage meaningfully” with alternative proposals the blue party had tabled.

He said the DA opposed a proposed increase in VAT, as this would “break the back” of South Africa's economy.

“We will now fight to introduce a new budget that is anchored in growing the economy, rather than increasing taxes or debt.”

Steenhuisen said his party “could not in good conscience support a two percentage point VAT increase”.

He was speaking outside parliament on an afternoon of drama after the budget, which was to have been presented on Wednesday, was postponed until further notice because of a lack of agreement.

This follows a fight in cabinet where the DA threatened not to support the budget due to the VAT increase.

The ANC will need the support of all GNU parties to pass the budget after it lost its parliamentary majority in the May 2024 elections.

National Assembly speaker Thoko Didiza told MPs the budget proceedings had never been postponed before in the three decades since the end of apartheid.

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