Postponement of national budget to have knock-on effect for provincial budgets

JOHANNESBURG - Provinces will have to wait longer to table their budgets after Finance Minister Enoch Godongwana's speech was postponed.

Godongwana was expected to deliver it on Wednesday, but it was called off at the eleventh-hour following disagreements over a proposed VAT hike among Government of National Unity (GNU) parties.

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The minister was also expected to table the 2025 Division of Revenue Bill to indicate how funds will be distributed nationally, provincially, and at local government.

The Division of Revenue Bill will give effect to Section 214 of the Constitution, which prescribes that an act of Parliament must provide for the determination of each province’s equitable share of the provincial share of that revenue and any other allocations to provinces, local government, or municipalities from the national government’s share of that revenue.

This, however, can only commence after the minister has triggered the process, and the exercise also has a time limit imposed on it.

According to Section 27, Subsection 2 of the Public Finance Management Act, the finance MECs in all provinces must table their respective provincial budgets no later than two weeks after the minister has tabled the national budget.

With the tabling of the budget now expected on 12 March, the provinces may be pressed for time to deliver theirs.