South Africa’s 2025 budget presentation was delayed as the cabinet met just before the speech due to disagreements over a proposed VAT hike. The Democratic Alliance refused to support this tax increase, creating a notable stalemate lasting since apartheid. President Ramaphosa’s spokespeople expressed hope for resolution, yet the DA maintained its opposition less than an hour before the speech.
On Wednesday, South Africa’s cabinet was still deliberating on the 2025 budget less than an hour prior to its scheduled presentation in Parliament. This delay marked a significant moment, as the budget had previously been postponed due to unresolved differences within the coalition government.
Originally set to be released three weeks ago, the annual budget faced postponement over a controversial proposal to increase the value-added tax (VAT) by 2 percentage points, raising it to 17%. The Democratic Alliance (DA), a prominent coalition party, opposed this tax increase, leading to a stalemate unprecedented since the end of apartheid.
Despite the impasse, President Cyril Ramaphosa’s aide expressed cautious optimism about resolving outstanding issues in time for a seamless budget passage. Vincent Magwenya stated, “A careful balance has been struck and all the necessary compromises have been made on issues related to the budget.” He urged the DA to support the amended budget, emphasizing its alignment with some of their proposals.
However, as the time for the budget speech approached, reports indicated that the DA had not yet agreed to endorse the revised budget, maintaining uncertainty over the final outcome of these negotiations.
In conclusion, South Africa’s budget presentation faced severe delays due to disagreements within the coalition government, particularly regarding the proposed VAT hike. Despite ongoing discussions and calls for compromise, the Democratic Alliance’s refusal to support the revised budget raises questions about the future of the country’s fiscal policies and the coalition’s stability.
Original Source: www.marketscreener.com
