Finance Minister Enoch Godongwana's budget speech has been postponed due to parties failing to reach an agreement on VAT increase.
Image: Independent Newspapers
The anticipated 2025 budget speech has been postponed to March. Speaker Thoko Didiza has announced that “parties” failed to reach an agreement over the proposed 2% VAT increase.
Didiza said the executives needed time to relook the proposal before deciding whether it can be approved and delivered to the people.
This is the first time in 30 years of democracy that the budget speech has just been postponed.
According to Didiza, the government leaders informed her that government of national unity (GNU) parties in the executive were not able to agree to the budget.
The parties in the GNU, including the Democratic Alliance, supported the postponement, while opposition parties such as the EFF and MK Party rejected the move. They called for the minister to account for the delay.
This raised concerns after Finance Minister Enoch Godongwana delayed delivering his speech. It was supposed to be presented at 2pm on Thursday.
Reports indicate that President Cyril Ramaphosa has called an emergency Cabinet meeting.
kamogelo.moichela@iol.co.za
*This is a developing story.
IOL Politics
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