Godongwana says budget postponement won’t impact G20 meeting

CAPE TOWN - Minister of Finance Enoch Godongwana said the budget postponement and dispute over VAT proposals won’t have any impact on the G20.  

The first foreign ministers’ meeting of the G20 kicks off on Thursday and will be followed by the first finance and central bank deputies and ministerial meeting, which starts next week.  

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But Godongwana told a press conference that the postponement won’t be an issue for G20 partners because their countries had problems of their own.  

The postponement of the budget on Wednesday coincided with another G20 gathering on Thursday, as the country prepares for the big heads of state summit in November.  

However, Godongwana said the postponement of the first Government of National Unity (GNU) budget, due to a few differences around a VAT increase proposal, won’t be a problem.  

"I don’t think it’s likely to do anything to G20. These people that are going to be here, they’ve got their own problems."

Minister in the Presidency Khumbudzo Ntshavheni said it was Cabinet ministers who didn’t approve the budget and not a party-political disagreement.

"We are all ministers of the government. We share a common concern about the impact of the budget in terms of achieving our priorities and protecting the poor."

While most parties in the National Assembly welcomed the postponement, they will now work on a few "trade-offs" before a new budget is presented on 12 March.