President Cyril Ramaphosa Says Budget Speech Postponement Was Not Crisis, but SA Doesn’t Believe Him

• President Cyril Ramaphosa defended the Minister of Finance, Enoch Godongwana, who was supposed to deliver the budget speech on 19 February 2025
• He was supposed to deliver his maiden Government of National Unity speech but because parties in the GNU did not agree on its contents, it was postponed
• The government received criticism for a proposed 2% Value-Added Tax (VAT) increase, and Godongwana said much of the VAT in SA is paid by high-income earners and not the poor

With over seven years at Daily Sun and Vutivi Business News, Tebogo Mokwena, a Briefly News current affairs journalist, offered insights into South African politics, national, provincial and local governance, the Government of National Unity, political parties and Parliament.

GAUTENG — President Cyril Ramaphosa defended the budget speech Finance Minister Enoch Godongwana was supposed to deliver on 19 February 2024 but postponed to 12 March. This was after the Government of National Unity partners differed on its contents.

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What did Ramaphosa say?

Ramaphosa spoke during the G20 foreign ministers meeting on 20 February. He said it was difficult for finance ministers to reach a point where raising taxes was not the only alternative. He also conceded that nobody wanted to pay more taxes. Despite this, he said the country is faced with the issue of having a limited revenue. He said SA's revenue cannot fund every ambition and priority it has.

He remarked that South Africans must ask questions on how the country must continue funding all the country's priorities including paying public servants. He called for a continuation of the debate.

Why did Godongwana not deliver his budget speech?

The Minister in the Presidency Khumbudzo Ntshavheni hosted a press briefing with Godongwana after parliament Speaker Thoko Didiza announced that the speech had been postponed. Ntshavheni said the African National Congress (ANC) objected to the 2% Value Added Tax (VAT) increase, followed by the Democratic Alliance (DA). Ntshavheni slammed claims that the DA's rejection of the VAT increase was the reason the budget speech was postponed.

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Ramaphosa released a statement hours after its postponement and said that the budget speech will ensure that it balances the need for fundamental growth and being mindful of the challenges South Africa faced. Speaking to Briefly News, Wits Economist Dr Kenneth Creamer said a VAT increase could lead to a myriad of issues including unwelcomed price increases.

Netizens' views

Netizens commenting on SABC News's Facebook Page slammed the ANC, as Godongwana and Ramaphosa were its members.

Vincent Hlatshwayo said:

"I blame the president. He should take full responsibility for this. He is afraid to tell deputy ministers that their jobs are finished."

Jabu Mahlangu said:

"Can't believe and or trust anything coming from anyone from the corrupt ANC. These ANC people should be in prison, not in Parliament."

Innocent Myende said:

"GNU was the sign of the incompetent president of the ANC and the country."

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Raletsiri Mokwena said:

"This fool is controlled by Ramaphosa instead of using his conscience."

Siya James said:

"How I so wish I could hear directly from the loyal hardcore members of the ANC blinded by loyalty what they are saying about this ANC current leadership."

Julius Malema slams budget speech postponement

In a related article, Briefly News reported that the Economic Freedom Fighters' president, Julius Malema, slammed the Government of National Unity and Godongwana for postponing the speech. He saw the postponement as a collapse of the GNU.

Malema delivered a fiery speech after Didiza announced that the speech would be postponed and said that the government was subjecting the budget to party politics. He said the government is denying SothvAfricans the opportunity to have insight into the workings of the country.

Source: Briefly News