For the first time since 1994, the national Budget Speech has been delayed due to disagreements among Cabinet ministers in the Government of National Unity (GNU). The disagreement centers around a proposed two-percentage-point hike to VAT, prompting the speech to be rescheduled for 12 March 2025.
Now, Finance Minister Godongwana must work to convince GNU partners to support a redrafted budget plan, with concerns mounting over how the delay will affect provincial government budgets.
Speaking on VOC Breakfast, MEC for Finance in the Western Cape, Deidré Baartman confirmed that the provincial budget, initially scheduled for 6 March 2025, will also be postponed in line with the national budget timeline.
The exact date will be determined by the timeframes set by National Treasury and the national government.
“The Western Cape has already undertaken extensive work in preparing our budget, guided by ongoing engagement with the National Treasury as part of the intergovernmental budgetary process. As is customary, the Western Cape will ensure that its budget is tabled within two weeks of the national budget,” she explained.
“Provinces are under severe pressure when it comes to service delivery in the Western Cape. Rapid population increases, particularly, create significant demands on resources and services,” Baartman stated.
Listen to the full interview below:
VOC News
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