South Africa’s Finance Minister Enoch Godongwana was forced to postpone the tabling of the 2025 national budget on Wednesday due to significant disagreements within the coalition government.
This unprecedented delay marks a troubling moment for the country’s government of national unity (GNU), which was formed after the African National Congress (ANC) lost its parliamentary majority in last year’s elections.
The postponement comes amid fierce opposition from coalition partners regarding Godongwana’s proposal to raise value-added tax (VAT) from 15 to 17 percent.
Critics argue that such an increase would exacerbate the ongoing cost-of-living crisis faced by many South Africans.
The Democratic Alliance (DA), the second-largest party in the coalition, voiced strong objections, with its leader John Steenhuisen stating that agreeing to a VAT hike would “break the back” of the economy.
Steenhuisen criticised both the ANC and Godongwana for failing to engage meaningfully with alternative proposals put forth by his party.
“We will now fight to introduce a new budget that is anchored in growing the economy, rather than increasing taxes or debt,” Steenhuisen said.
Coalition tensions were further highlighted when other partners, including Freedom Front Plus, expressed frustration over being informed about the proposed VAT increase only shortly before it was set to be presented.
Godongwana, however, told journalists in Cape Town that discussions regarding the proposed hike had occurred during cabinet meetings prior to Wednesday’s scheduled presentation.
He said he would now table the revised budget on March 12 following additional negotiations aimed at resolving these internal conflicts.
