By 
South Africa experienced a historic moment on Wednesday, 20 February 2025, for the first time since the advent of democracy the budget speech was postponed, which caused panic on markets and leaving much speculation in citizens.
The inaugural budget speech of the Government of National Unity (GNU) was postponed as the parties composing the GNU could not agree on the budget, it is speculated that the Minister for Finance Mr Enoch Godongwana was due to announce a 2 percent hike in VAT, which caused a major upset amongst the parties in the GNU.
President Cyril Ramaphosa issued a statement to calm the brewing storm in the country over the VAT matter, and that the GNU centre is not holding, the postponement just spells the depth of instability within the GNU.
Ramaphosa assured the citizens of South Africa that Cabinet is continuing deliberations on the Budget that will deliver outcomes that will protect vulnerable citizens and lay a platform for economic growth.
He said the postponement yesterday of the tabling of the Budget in Parliament was the result of disagreement but also collegial and mature consensus within Cabinet that Budget proposals be worked through comprehensively and productively to secure the wellbeing of the economy and individual citizens.
“We are called upon as the national leadership to pursue all initiatives aimed at growth in order for us to increase employment and alleviate the effects of poverty.
The Government of National Unity will in the coming days and week intensify our efforts to balance the imperatives that drive the fundamental growth objectives of this administration with the realities of a constrained fiscal environment.
We are working as partners to ensure that the Budget is one that works for individuals and investors alike,” said President Cyril Ramaphosa.
