Minister of Finance, Enoch Godongwana’s 2025 National Budget has finally been approved following the adoption of the fiscal framework that is the backbone of the budget.
Image: Independent Newspapers
Minister of Finance, Enoch Godongwana’s 2025 National Budget has finally been approved following the adoption of the fiscal framework that is the backbone of the budget.
This was Godongwana’s third attempt to get the National Budget passed after an outcry over two proposals to increase VAT.
During a joint meeting with Standing Committee on Finance, and the Select Committee on Finance, Members of Parliament adopted the document that establishes economic policy and revenue projections and sets the overall limits for government spending.
The process, which took three hours on Wednesday, was not without its issues, with some members arguing that the process was flawed and that not everyone was able to make their voice heard. Insults also flew, with one member saying that her peers should “learn to read”.
In presenting the May 21 National Budget, Godongwana said there were no austerity measures, although government spending was held back. The fuel levy as well as sin taxes were increased.
The budget invests over R1 trillion in critical infrastructure to lift economic growth prospects and improve access to basic services, Godongwana said on May 21. He added that this would be done without compromising the fiscal strategy of sustainable public finances.
Government has achieved its balancing act by reducing additional spending over the medium term by R68 bilion after facing a R75bn revenue hole as VAT was not being increased.
In May, Godongwana added that the government would continue to pay large amounts to service debt, which would amount to more than R1.3 trillion over the next three years. “Put differently, this means in 2025/26 alone we are spending around R1.2bn per day to service our debt,” he said.
IOL