Parliament awaiting Finance Minister to table new budget documents
Almost two months into the financial year and Treasury has been sent back to the drawing board in a third attempt to table a national budget that will appease the majority of parties.
Finance Minister Enoch Godongwana tabled the 2025 budget in the National Assembly in Cape Town on 12 March 2025. Picture: GCIS
CAPE TOWN - Parliament is expecting the Finance Minister to table a full set of new budget documents following Sunday's court order that suspended a value-added tax (VAT) increase, and set aside the fiscal framework passed by the house earlier this month.
It was this framework that led to discord within the Government of National Unity (GNU) when the African National Congress (ANC) lobbied ActionSA and smaller opposition parties to support the budget blueprint, when the Democratic Alliance (DA) and FF Plus refused to do so because it contained a VAT hike.
The DA and Economic Freedom Fighters (EFF) came to an out-of-court agreement with Finance Minister Enoch Godongwana to settle their dispute for now, pending new VAT legislation being passed and a new fiscal framework being tabled.
Almost two months into the financial year, and Treasury has been sent back to the drawing board in a third attempt to table a national budget that will appease the majority of parties.
READ: DA hails court ruling suspending VAT increase
Last week, Godongwana tabled a new rates and monetary amounts amendment bill, retracting the 0.5 percentage point increase he had announced on 12 March.
But this is still subject to parliamentary approval, which would not have succeeded before the 1 May implementation date.
The Finance Minister was also put to terms by parliament to table alternative revenue proposals to the fiscal framework as agreed to by its finance committees, before 2 May.
Parliamentary spokesperson, Moloto Mothapo, said the court order paves the way for new budget instruments to be tabled.
READ: EFF calls for Godongwana's resignation following court order suspending VAT increase
"Parliament affirms that in entering into the settlement, it had not conceded that the parliamentary processes followed in adopting the fiscal framework were unlawful or procedurally defective."
In a statement, Godongwana insisted his March budget was constitutional and appropriate given the limited options available to balance fiscal sustainability with service delivery needs.
He stands by his view that a VAT increase would be less detrimental to economic growth and employment than other options considered by the treasury.