MANYANE MANYANE
Political parties on Wednesday had mixed reaction to the postponement of Finance Minister Enoch Godongwana’s budget speech, as parties in the Government of National Unity (GNU) could not find consensus on the proposal to increase value-added tax (VAT) by 2%, which would have raised it to 17%.
The executive decided to adjourn and postpone the sitting to March 12 to allow enough time to reassess the budget.
Parliament's speaker Thoko Didiza said the proposed 2% increase in VAT was just one of many issues that could not be agreed upon.
“While today, we have been gathered here to have the minister of Finance to present the budget to the house that there has not been agreement in terms of parties in the executive to find one another in proposals of the budget.”
“The cabinet decided not to come and do a presentation of the budget and allow themselves enough time to re-look the budget and come back to this house in March.”
However, the opposition parties in government bemoaned the executive for failing to agree on the contents of the budget speech.
EFF leader Julius Malema described the decision as ‘disgraceful and shameful’, saying it ‘exposes the utter incompetence of the National Treasury and the so-called GNU’.
“This is nothing more than a desperate attempt by the illegitimate coalition government to mask its internal contradictions, lack of direction, and total failure to provide economic leadership in a time of crisis.”
Malema said the postponement of the budget was not a sign of democracy, maturity, or consultation, adding that it was a symptom of weak, indecisive, and opportunistic governance that has left millions of South Africans uncertain about their future.
“The reality is that the 2025 Budget was already finalised, and the only reason for the postponement is the deep divisions within the GNU, particularly over the reckless and disgraceful proposed increase in VAT from 15% to 17%.
“The National Treasury and the DA-led neo-liberal faction are hellbent on punishing the poor while protecting the white capitalist establishment, and the so-called deliberations are nothing more than a smokescreen for their anti-poor policies.”
The MK Party said this unprecedented budget postponement, never witnessed in South Africa’s democratic history, ‘was undeniable proof that President Cyril Ramaphosa and his ANC were not in control’.
“Never in the history of democratic South Africa has a budget speech been postponed—let alone due to internal political disputes. This reckless decision by the DA-led coalition not only undermines the authority of Parliament but also shakes investor confidence, as reflected in the rand’s decline following the announcement,” said spokesperson Nhlamulo Ndhlela.
He said disruptive political gimmicks expose a complete disregard for the suffering of ordinary South Africans, particularly the black majority, who continue to bear the brunt of rising unemployment, inflation and deteriorating service delivery.
Build One South Africa (BOSA) leader Mmusi Maimane said the postponement was a historic and ‘deeply troubling moment for our democracy’.
Maimane said it was an undeniable demonstration of the chaos within the ‘so-called’ GNU exposing its lack of a coherent vision for the country.
“For the first time in democratic South Africa, the national budget—a fundamental pillar of governance—has been subjected to the whims of internal party politics. This failure to present a budget on time will rattle investor confidence, send shockwaves through financial markets, and further erode public trust in government.
“The GNU was marketed as a bold step toward stability and collaboration. Instead, it has become a government of national failure. The inability to deliver its first budget is a final death blow to the so-called GNUphoria,” said Maimane.
However, the parties in the GNU, including the DA and Freedom Front Plus, supported the postponement, adding that it as a victory for the people of South Africa, as it prevented the implementation of a 2% VAT increase that would have broken the back of the economy.
DA leader John Steenhuisen said the postponement resulted from the party’s resolute opposition to the ANC’s plan to hike VAT at a time when millions of South Africans were already suffering under a cost of living crisis.
“The last minute postponement came about because of the failure by the ANC, and specifically Finance Minister Enoch Godongwana’s failure to engage meaningfully with the alternative proposals tabled by the DA.
“Following our defeats of the ANC’s plan to hike VAT, we will now fight with the same vigour to introduce a new budget that is anchored in growing the economy, rather than increasing taxes or debt,” said Steenhuisen.
Freedom Front Plus Finance spokesperson Wouter Wessels said the parties in the GNU demonstrated that they will not be bullied as they put their foot down regarding the proposal to hike VAT by 2% points.
“The previous VAT increase has already shown that VAT is not a goose laying golden eggs amid a bankrupt economy and impoverished community. The truth of the matter is that it will further stagnate the economy and exacerbate the economic crisis,” he said.
The decision was also met with mixed reaction from civil society organisations.
Human rights organisation Black Sash said it was appalled by the political wrangling within the GNU that has led to the ‘shocking cancellation of the much-anticipated budget speech’.
The organisation described it as a display of recklessness that threatens the livelihoods of millions of South Africans who depend on social protection to survive.
“The absence of this critical address leaves significant uncertainty regarding the allocation of resources to essential social assistance programs.
“While Black Sash supports the refusal of VAT increases, we disagree with the 11th hour nature of the cancellation,” said executive director Rachel Bukasa.
Trade Union Solidarity said the decision by parties in the GNU to put their foot down against the ‘ANC’s harmful policies’ can be regarded as a positive step.
Spokesperson Theuns du Buisson said the audacity of Godongwana ‘to try to get approval for critical policies only on the day of the budget speech was, however, indicative of a larger problem within the GNU’.