Economic Freedom Fighters commander-in-chief, Julius Malema. Photo: @EFFSouthAfrica
The postponement of the 2025 budget speech has ignited a political backlash, with opposition parties saying the move rendered parliament “useless”.
Finance Minister Enoch Godongwana was due to table his first budget under the government of national unity (GNU) on Wednesday, but the speaker of parliament, Thoko Didiza, had to postpone it after the cabinet disagreed over a proposed two percentage point hike in VAT.
The budget will now be tabled on 12 March.
Didiza said the postponement was an unforeseen and unavoidable situation, noting that the delay was unprecedented.
Economic Freedom Fighters leader Julius Malema argued that there was no authority for the move because the budget must be tabled to be debated by parliament.
“We must all know that this is unprecedented, and this is not a practice that we want to set for this parliament. It is going to be your legacy [speaker] that during your tenure, parliament could not debate and adopt the budget. We are saying you are denying this body [MPs] an opportunity to receive the budget, debate it, accept it or reject it,” Malema said in response to Didiza’s announcement.
“Bring it to parliament, let it be debated, let it be amended.”
ActionSA’s Athol Trollip called the delay a “failed mark for the ANC-led GNU”, but the African Christian Democratic Party’s Steve Swart took a more conciliatory stance, saying the postponement was in the nation’s best interest, given clear divisions in the coalition government over the VAT hike.
“We plead for calmness,” he said.
Democratic Alliance (DA) leader John Steenhuisen framed the postponement as a demonstration of his party’s influence in the unity government, saying it “unequivocally” rejected the proposed VAT increase.
“The postponement … is a victory for the people of South Africa. It prevents a 2% VAT increase that would have broken the back of our economy,” Steenhuisen said.
He accused the ANC and Godongwana of failing to meaningfully consider alternative DA proposals, adding: “Following our defeat of the ANC’s plan to hike VAT, we will now fight with the same vigour to introduce a new budget that grows the economy rather than increasing taxes or debt.”
Steenhuisen suggested that if the VAT hike had been tabled in the budget, the DA would have been prepared to vote it down in parliament.
“For the first time, the ANC has been prevented from tabling an anti-growth budget,” he said.
City of Cape Town mayor Geordin Hill-Lewis posted on social media that the ANC had learned an “essential lesson” in the coalition government.
“The DA was clear: we will not support VAT increases because they hurt the poor.”
Didiza said she had consulted all political parties on the postponement.
“While the EFF and uMkhonto weSizwe [MK] party expressed concerns, all parties ultimately agreed to the postponement,” she said.
MK MP Jimmy Manyi, whose party is now the official opposition, said the deferment pointed to a national crisis.
“This country has no leadership. If we have democracy, let democracy come and exercise itself here. The finance minister should have presented his budget rather than allowing rumours to circulate about VAT hikes that would further impoverish our people,” Manyi said.
In a statement, the MK party said it would call on the auditor general to investigate the postponement.
“The MK party will be writing to the auditor general to demand an investigative audit into the financial losses caused by this reckless decision by these defenders of neo-liberalism. We will also explore legal avenues to hold those responsible accountable for this reckless governance failure,” it said.
African Transformation Movement leader Vuyolwethu Zungula questioned who had the authority to decide on the postponement.
“The executive’s incompetence should not become parliament’s incompetence,” he said.
“Let the finance minister present his speech and allow parties to show where they stand.”