File
The first budget of the government of national unity stalled at the first hurdle when Finance Minister, Enoch Godongwana’s much-anticipated budget speech was postponed to 12 March.
The Speaker of Parliament, Thoko Didiza, told the House on Wednesday that the parties in the GNU could not reach an agreement on certain proposals.
Parties had reportedly disagreed on a proposal to increase Value Added Tax by 2%, from 15% to 17%.
The Rand took a tumble on news of the budget postponement, with one analyst describing the market reaction as “surprising.”
Parties outside of the GNU were quick to condemn the decision to postpone the budget, with the EFF leader, Julius Malema, signalling the end of the GNU.
He told the Speaker that it would be her legacy that “Parliament could not debate or adopt the budget”, saying MPs should decide.
“The GNU has collapsed as there is no budget to produce,” he said.
Mzwanele Manyi of the official opposition MK Party, described the decision as a “shocker”, saying democracy should have been exercised in the House.
The EFF and the MK Party said Godongwana should have tabled the budget and let MPs debate and decide on the proposals.
"The postponement of the Minister of Finance’s 2025/26 National Budget Speech today is a victory for the people of South Africa, as it prevents the implementation of a 2% VAT increase that would have broken the back of our economy," said DA leader John Steenhuisen.
He said the postponement resulted from the DA’s resolute opposition to the ANC’s plan to hike VAT at a time when millions of South Africans are already suffering under a cost of living crisis.
"Now is the time to replace a failed ANC VAT budget, with a brand new GNU growth budget," Steenhuisen said.
Meanwhile, parties in the GNU agreed to the postponement as a necessary measure for the parties to find common ground.
Corne’ Mulder of the Freedom Front Plus said it was not time for cheap politicking.
“This is serious. But we also understand that the GNU is serious about South Africa and its future. So, we must understand the need for more time to have further discussions on these things.”
Musi Maimane, Build One South Africa leader said the House should be guided by legislation, calling for firm timeframes. “Today marks a historic day,” he said.
Steve Swart of the ACDP said his party supported the delay and requested a specific timeline for the postponement date.
Howevever, he noted that the decision could have an impact on the market.
Swart said there was a need for consensus on the contentious increase, including the proposed increase in VAT.
The IFP confirmed being part of the consultations and had agreed to the postponement.
Patriotic Alliance leader, Gayton Mckenzie, said the decision to postpone the budget was an indication of a “government taking charge”.
He said South Africa was not a one-party state.
Good Party leader, Patricia de Lille, called on parties to stop playing party politics, noting that all the parties in the GNU had agreed to the postponement.
ActionSA parliamentary leader, Athol Trollip said the “decision sent shock waves across the world”.
He said the decision to postpone comes as a result of an “arrogant ANC” saying parties won’t just accept any budget proposals.
Trollip said the GNU should have sorted this out a long time ago.
“GNU partners are flexing their muscles and put their foot down, but what happened today was not good for South Africa,” he added.
