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Third Time Lucky? South Africa Presents Revised Budget
- The third iteration of South Africa's 2025 budget was unveiled in Cape Town on Wednesday by the country's finance minister, Enoch Godongwana.
- This budget followed coalition disagreements that blocked two earlier attempts and scrapped a planned VAT increase that threatened government stability.
- The budget plans for a 5.4% annual increase in non-interest spending over the next three years, allocates more than R1 trillion towards infrastructure development, and introduces a fuel levy hike following a three-year pause.
- Finance Minister Godongwana emphasized that the 2025 Budget does not entail austerity measures, yet he acknowledged that maintaining the VAT rate at 15% limits the government's funding capacity, especially given a forecasted GDP growth of 1.4% and a broader budget deficit of 4.8%.
- The budget passed parliament and implies future tax increases to raise R20 billion, while aiming to sustain social spending and stabilize debt at 77.4% of GDP in 2025/26.
30 Articles
30 Articles
South Africa: 'This is Not an Austerity Budget' - Finance Minister Godongwana
Cape Town -- "This is not an austerity Budget" were among the first words South African Finance Minister Enoch Godongwana spoke on his third attempt to present the country's 2025 Budget to South Africa.
South Africa sees wider budget deficit, higher debt after scrapping VAT hike
CAPE TOWN (Reuters) -South Africa’s National Treasury said on Wednesday that this fiscal year’s budget deficit would be wider and public debt higher after it was forced to backtrack on a proposed increase in value-added tax (VAT). The Treasury was presenting a third version of the 2025 budget, after disagreements in the country’s coalition government derailed two previous attempts. Scrapping the plan to raise VAT, coupled with lower economic gro…
South Africa Weighs More Borrowing After Tax Hike Plan Dropped
South Africa’s National Treasury is considering raising additional borrowing in its latest rendition of the budget, to be delivered on Wednesday, to cover a revenue shortfall after a plan to increase taxes was scrapped.
South Africa's spending plans hinge on tax agency hitting target, finance minister says
By Colleen Goko South Africa will need to slash spending if its tax agency does not meet its revenue collection target this year, Finance Minister Enoch Godongwana said on Thursday, as the government focuses on keeping rising debt under control. Godongwana was speaking after making only minor adjustments to the government’s spending plans and deficit projections in a third budget presented to lawmakers on Wednesday. His two previous attempts wer…
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