‘The drop-dead date’: Will the budget speech be postponed again?

Minister in the Presidency Khumbudzo Ntshavheni has reassured the public that the tabling of the national budget by Finance Minister Enoch Godongwana will proceed without further delays.

The budget speech, initially postponed due to disagreements over a proposed 2% increase in value-added tax (VAT), is now set for 12 March as discussions continue on an alternative financial plan.

Cabinet reacts to budget speech delay

Speaking to the media on Thursday, Ntshavheni attributed the delay to Cabinet’s collective efforts to address South Africa’s funding challenges within a “constrained fiscal environment”.

The minister explained that ongoing deliberations aim to determine the “best ways to fund our national priorities and ensure the budget reflects the aspirations of all South Africans”.

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Although it marked the first postponement of a budget speech in democratic South Africa, Ntshavheni stressed that the process remains within the legal framework of the Public Finance Management Act (PFMA).

She firmly ruled out any additional delays.

“The 12th of March is cast in stone,” Ntshavheni declared.

However, the minister declined to disclose details of what she described as “market-sensitive” budgetary information.

GNU differences

Addressing speculation about disputes among Cabinet members from different political parties within the government of national unity (GNU), Ntshavheni dismissed such claims.

“We don’t have people representing their political parties; we have got members of Cabinet appointed by the president,” she asserted.

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“That has been made clear to say that nobody is bringing a party jacket; we are there to represent the interests of all South Africans.”

She also confirmed that a special Cabinet meeting is scheduled for next week to finalise discussions.

“We are going to meet next week Monday to finalise our inputs to Treasury so we allow the minister of finance and the Treasury team space to do what they are required to do as provided for in the law.”

Ramaphosa talks budget speech negotiations

Moreover, President Cyril Ramaphosa downplayed concerns over budget disagreements, stating they were “not fatal”.

“There are governments that have fallen and broken apart over budgets, so this shows that we are a maturing democracy, where there has to be consensus that should be built around the budget.

“In the past, it was just one party that crafted the budget and presented it to Parliament and to the country,” he said at a Goldman Sachs event on Thursday.

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Ramaphosa highlighted that due to ANC’s reduced electoral majority, the party must now mediate between differing perspectives within the GNU.

The president described the ongoing discussions as a “healthy form of negotiations” and reaffirmed that the deadline for the budget remains firm.

“There is a deadline. The drop-dead date is the 12th of March. That’s when the budget has to be put to the nation, so there are negotiations that are going on.”

Watch Ramaphosa’s conversation at Goldman Sachs below:

Ramaphosa pointed out that compromises would be necessary in the negotiations, given the challenging fiscal environment and the country’s revenue falling short of expected levels to meet government priorities.

“You have got to do trade-offs and say what is important now, what can be done later, and lay emphasis on growing the economy but at the same time do a balance and look after the interests of the people of South Africa, where our unemployment rate is one of the highest in the world.”