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Parliament is debating and will vote on the fiscal framework and revenue proposals.
The State of the Nation Address (Sona) debate at the Parliamentary Dome in Cape Town on 11 February 2025. Picture: Gallo Images/Jeffrey Abrahams
The National Assembly’s debate and vote on the national budget faced delays on Wednesday due to multiple points of order raised by Members of Parliament (MPs).
The plenary session was convened at the Nieuwmeester Dome in Cape Town.
This followed a meeting of the standing committee on finance, where the 2025 fiscal framework and revenue proposals – tabled by Finance Minister Enoch Godongwana – were accepted with support from MPs representing ActionSA, the ANC and the Inkatha Freedom Party.
ActionSA proposed a motion to adopt the report, with amendments calling for the removal of the planned 0.5% value-added tax (VAT) increase over two financial years and the scrapping of the decision not to adjust personal income tax brackets for inflation.
The party further proposed that Godongwana and the National Treasury be given 30 days to identify alternative revenue sources.
Despite objections from the Democratic Alliance (DA), Economic Freedom Fighters (EFF), and uMkhonto weSizwe (MK) party, the committee proceeded to adopt the report.
As Wednesday’s sitting commenced at 2pm, DA chief whip George Michalakis urged National Assembly Speaker Thoko Didiza to send the fiscal framework report back to the standing committee on finance, arguing it did not meet the requirements of the Money Bills Amendment Procedure and Related Matters Amendment Act.
“The matter is in procedural default,” Michalakis stated, emphasising that the VAT increase was set to take effect on 1 May.
“If the house considers that report despite the procedural default, this house would be complicit in considering what we believe to be an illegal report at this stage.”
ALSO READ: Budget 2025: Here’s how you can object to the VAT increase
African Transformation Movement (ATM) leader Vuyo Zungula also challenged the process, stating: “The committee must be requested to properly and legally follow the correct processes in terms of adopting that report.”
EFF MP Omphile Maotwe echoed these concerns, arguing that the Money Bills Act mandates MPs to either accept or amend the fiscal framework and revenue proposals.
“It is a question of a legal requirement, not a procedure of a committee, so we appeal to you to suspend today’s proceedings,” she said.
MK party chief whip Mzwanele Manyi asserted that the law did not allow for a provisional acceptance of the fiscal framework.
Despite these objections, Didiza ruled that the debate proceed, stating that she had already responded in writing to the parties regarding their concerns.
“The question to accept the fiscal framework was duly considered by the committee,” she said.
READ MORE: Budget 2025 VAT exemptions show Treasury’s disconnect with poor people
She further asserted that there was no legal barrier preventing parliament from moving forward with the vote.
“On the basis of the report and advice received, I’m not convinced that the committee contravened the law or rules when finalising its report,” she stated.
Additionally, EFF’s Nontando Nolutshungu proposed a roll-call voting system, while MK party MP David Skosana suggested a secret ballot vote.
The fiscal framework and revenue proposals outline the country’s economic policies, revenue projections, and government spending limits.
While the ANC and DA remain locked in negotiations over the VAT hike dispute, the stance of other government of national unity (GNU) parties could be decisive in the framework’s approval.
Without the DA’s 87 seats, the GNU commands a total of 198 votes – three short of the 201 required for a simple majority to pass the budget.
The addition of ActionSA’s six seats, however, could push it over the threshold.
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