Democratic Alliance (DA) leader John Steenhuisen has revealed that discussions on South Africa’s 2025 budget are still ongoing, with no agreement reached yet between the key partners of the Government of National Unity (GNU), despite the Cabinet’s approval of the new budget.
In a post on X on Tuesday, Steenhuisen clarified: “Good afternoon, South Africa. Constructive discussions on the budget are ongoing. There is no agreement yet, but we are working towards a resolution by 12 March.”
His comments followed a statement earlier in the day from the Cabinet, which confirmed that a reworked version of the 2025 budget had been approved after a series of negotiations led by Deputy President Paul Mashatile. This included discussions supported by the National Treasury, which proposed several options that ultimately led to an agreement.
“Cabinet has concluded its input process into the Budget. The Minister of Finance and National Treasury are now set to finalise the budget and table it before Parliament on March 12,” the statement read.
However, sources indicate that the Cabinet rejected the initially proposed reworked budget, particularly the controversial 2% VAT increase. The Cabinet argued that this tax hike would burden the people of South Africa further and was not an acceptable solution.
Opposition to VAT Hike
The DA and other political parties within the GNU have vocally opposed the proposed VAT increase, arguing that it would worsen the financial struggles of ordinary South Africans. These concerns led to the postponement of the budget last month after the various partners in the GNU failed to reach a consensus on this issue.
Several Cabinet meetings, called by President Cyril Ramaphosa, followed the delay in a bid to resolve the deadlock. Despite the Cabinet’s approval of the budget, the matter remains unresolved with further discussions set to continue.
Cabinet Responds
Cabinet spokesperson Khumbudzo Ntshavheni addressed critics of the delay, explaining that the postponement was not a result of party politics but rather an opportunity for further discussions on the budget.
With the final decision set to be made by March 12, all eyes are on whether an agreement can be reached in time to prevent further delays in the country’s fiscal planning.
