Cabinet Deadlock Delays 2025 Budget Speech

The South African Cabinet remains divided on the 2025 Budget Speech, failing twice within a week to agree on a revised plan. Meanwhile, the Democratic Alliance (DA) has presented its alternative budget proposals, calling for zero tax increases.

DA Opposes Tax Hikes, Proposes Cuts

On 25 February 2025, the DA outlined its budget plan, emphasizing the need to prevent tax increases while reducing wasteful expenditure. The party’s finance spokesperson, Mark Burke, highlighted a six-point strategy, including:

• No increases in corporate or personal taxes
• Reprioritizing R58 billion in government spending
• Conducting a three-month emergency spending review to identify inefficiencies
• Redirecting funds to essential services like healthcare, policing, and education

Cabinet Rejects Revised Budget Again

The DA’s proposals followed Finance Minister Enoch Godongwana’s unsuccessful attempt to present a reworked budget. On 24 February, he introduced a revised version without the controversial 2% Value-Added Tax (VAT) increase. However, after a six-hour special meeting, cabinet members failed to reach a consensus, leading to another postponement.

The revised budget reportedly included cuts to key sectors, including:

• The hiring of 11,000 new teachers
• Salary increases for government employees
• Funding for prison warders and the Department of Defence

Political Fallout and Public Reaction

The budget delay has sparked strong reactions across the political spectrum:

• Julius Malema claimed the government had effectively collapsed due to the indecision.
• Khumbudzo Ntshavheni stated that African National Congress (ANC) members were the first to reject the VAT hike.
• Moeletsi Mbeki criticized the ANC, saying the party no longer prioritizes the poor.

Amid the controversy, President Cyril Ramaphosa has defended Minister Godongwana, stating that the budget revisions were necessary given the country’s financial challenges. However, with the Budget Speech now rescheduled for 12 March 2025, uncertainty remains over whether the cabinet will finally reach an agreement.