South Africa’s 2025 Budget Presentation Faces Last-Minute Delays

South Africa’s 2025 budget presentation was delayed due to coalition disputes over a VAT increase. Despite optimism from President Ramaphosa’s spokesperson regarding compromise, the Democratic Alliance remained undecided just before the speech.

South Africa’s finance minister was set to present the 2025 budget in parliament, although the cabinet was still in discussions just an hour prior to the speech, according to sources from the Democratic Alliance party. This budget announcement had already faced delays, initially scheduled for three weeks prior due to disagreements over a proposed value-added tax (VAT) increase of 2 percentage points to 17%.

The Democratic Alliance (DA), the second-largest party in the coalition government led by the African National Congress, has opposed the VAT hike, leading to a historic stalemate unprecedented since the end of apartheid. President Cyril Ramaphosa’s spokesperson indicated confidence in resolving outstanding issues in time for the budget’s approval.

Vincent Magwenya, spokesperson for President Ramaphosa, stated that a careful balance and necessary compromises had been reached concerning the budget. He emphasized the need for the DA’s approval of the revised budget, asserting its alignment with some of the party’s proposals. Yet, mere moments before the speech, the DA had not yet committed to endorsing the revised budget, according to party sources.

In summary, South Africa’s 2025 budget presentation faced significant delays due to internal disputes within the coalition government, particularly regarding a proposed VAT increase. Key political figures expressed optimism about reaching an agreement, yet the Democratic Alliance’s lack of support for the latest budget revisions casts uncertainty on the upcoming presentation and the broader economic implications.

Original Source: www.marketscreener.com