“Budget Delay Raises Red Flags: BUSA Urges Unity and Economic Focus as South Africa Faces Uncertainty”

by Hope Ngobeni

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Business Unity South Africa (BUSA) has expressed significant concern following the Minister of Finance’s decision to delay the tabling of the 2025 Budget. Khulekani Mathe, CEO of BUSA, stated that this postponement sends a troubling signal to both South Africans and the business community, as well as international markets. Mathe emphasized that the delay reflects poorly on the Government of National Unity’s (GNU) ability to work collaboratively for the benefit of the country, especially in fulfilling the essential task of determining how national resources will be allocated. He pointed out that the uncertainty created by the delay is something South Africa can hardly afford. According to Mathe, it should have been clear much earlier that the GNU parties were struggling to reach an agreement on the budget, and an earlier announcement of the postponement could have prevented undermining the credibility of the National Treasury.


Mathe also called on all political parties to place the country’s needs ahead of their political interests. He urged that the extra time provided to the Cabinet should be used to develop a budget that focuses on promoting economic growth. He highlighted that prioritizing economic growth is the only sustainable way to balance the budget without compromising critical social spending programs or harming the economy.

Professor Irrshad Kaseeram from the University of Zululand’s economics department shed light on the root of the delay, explaining that the contentious issue was a proposed 2% increase in VAT. Kaseeram noted that despite the dispute, the setting of a new date for the budget presentation is a positive sign for the GNU. He stressed the importance of consensus decision-making within the ANC-led government, highlighting that several parties objected to the VAT increase. For political stability and good governance to thrive, Kaseeram argued, different trade-offs and options need to be presented to the GNU as part of the consensus-building process.

The delay has raised concerns about the government’s ability to effectively govern and deliver a budget that addresses both immediate needs and long-term economic challenges. With tensions over key decisions like VAT hikes, the outcome of this process will have a lasting impact on South Africa’s fiscal outlook and its ability to foster both social welfare and economic growth.

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