In an unprecedented development, South Africa’s National Assembly Speaker Thoko Didiza has announced that the Budget speech will not take place as scheduled on Wednesday, 19 February.
Finance minister Enoch Godongwana was set to deliver the budget at 2pm, marking the first financial plan under the Government of National Unity (GNU).
The postponement has sent shockwaves through political and financial circles, with stakeholders awaiting clarity on the way forward.
The Budget was expected to address critical economic issues, including growth strategies, unemployment, and fiscal consolidation.
However, sources indicate that disagreements within the Government of National Unity have complicated the process.
Unlike previous years, Godongwana had to navigate the expectations not only of the ANC and its alliance partners but also those of the coalition partners. Notably, these partners have expressed strong opposition to any proposed tax increases, creating a significant impasse.
DA leader John Steenhuisen described the postponement as a victory for the people of South Africa, “as it prevents the implementation of a 2% VAT increase that would have broken the back of our economy”.
Political analysts have described the situation as a test of the stability of the GNU.
"This postponement underscores the complexities of coalition governance, especially when it comes to sensitive issues like taxation," said political commentator, Lerato Mthembu.
The National Treasury has yet to issue a statement regarding the rescheduling of the Budget speech. In the meantime, markets reacted cautiously, with the rand experiencing slight volatility amid investor uncertainty.
Further updates are expected as negotiations within the coalition continue. The postponement raises concerns about the government's ability to implement key policy measures in a timely manner.
This is a developing story.
