SCORE: B+ Finance minister Godongwana’s leadership this year faced its first test during the tabling of the national budget. For the first time, the budget had to be re-tabled over a dispute about a proposed VAT increase, initiated by parties in the government of national unity. The minister was required to strike a balance between […]
The finance minister announced a lower inflation target of 3%, which the South African Reserve Bank has been pushing for
The city faces grant cuts unless a credible recovery plan is submitted, as tensions grow in the governing coalition
There is not enough transparency and the funds would be better spent on health and education
The Economic Freedom Fighters slammed the ruling as setting a dangerous precedent on taxation without oversight and vowed to fight on
uMkhonto weSizwe party is calling for the nationalisation of mineral resources, land redistribution without compensation and the expansion of the VAT zero-rated basket
The EFF criticises it as ‘unimaginative’ and not benefiting poorer South Africans, while the DA calls it a step towards ending ‘unchecked government spending’
The 21 May budget is lower than the R232.6 billion proposed in the March budget that was scrapped
The finance minister said the expenditure would be carried out ‘without compromising the fiscal strategy of sustainable public finances’
In his third prepared budget for the year, the minister said government debt would still stabilise this year but at 77.4% of GDP, higher than predicted in March
Now that a VAT increase has been ruled out, the finance minister must find another way to plug a R75bn gap or risk collapsing public services and investor confidence
President Cyril Ramaphosa will use his Washington visit to demand an end to US trade tariffs and counter refugee claims of racial persecution.
The president and the national treasury launched phase two of Operation Vulindlela on Wednesday, expanding its focus areas
The Democratic Alliance is challenging the Employment Equity Amendment Act in court, saying it violates constitutional protections against unfair racial quotas
It is high time for policy reckoning in the GNU
The finance minister says his U-turn on a VAT hike was a collective decision of the government of national unity
Godongwana promises fiscal prudence in his new budget but the growth forecast may change
The saga reflected political sniping and the inability of parties in the government of national unity to cooperate
Meetings are due in coming days and weeks to undo the damage after the finance minister caved on the tax increase
The Democratic Alliance has claimed credit for the about-turn by the treasury on the tax, saying its legal team had presented a strong case against the flawed parliamentary process used to adopt the fiscal framework
The finance ministry in a midnight announcement said the decision was informed by consultations with political parties
Counsel for the EFF told the high court that ActionSA was swindled in an unconstitutional manner to support a VAT hike.
Amending his proposal at this stage would force more borrowing, the minister warned in papers filed in response to the DA
The parties remain divided over an increase in VAT, which the DA says South Africans cannot afford
The stand-off between the two parties dates back to 19 February when DA leader John Steenhuisen made clear the party would not support a national budget that proposed a two percentage point increase in VAT
Both parties are mindful of the magnitude of a split as South Africa faces more economic turmoil
In its court papers filed on Thursday, the party said the fiscal framework that will lead to the tax increase was pushed through unprocedurally
The Democratic Alliance now plans to challenge the fiscal framework in court, further raising the tension around its future in the ruling coalition
The agreement came thanks to a lifeline ActionSA threw the ANC
The ANC has so far rejected conditions on which the DA would agree to support Finance Minister Enoch Godongwana’s 0.5 percentage point VAT increase for the coming fiscal year
The ANC secretary general said the ANC would not water it down to ‘Kiss the Boer’, nor would it prescribe to other parties what they must sing
The department says the reduction in teaching posts has increased the projected average teacher-to-learner ratio from 1:34.2 in 2024 to 1:36.7 this year