Finance Minister Enoch Godongwana is set to return to Parliament on Wednesday (21 May) to deliver his much-anticipated revised fiscal policy framework, colloquially referred to as “Budget 3.0.”
This marks his third attempt to table the 2025 budget, following two previous failures to secure sufficient support.
His address comes at a time when South Africa is grappling with a deepening economic crisis, as mounting debt and sluggish growth continue to strain government finances.
With a value-added tax (VAT) increase now off the table due to political resistance, Godongwana is expected to walk a fiscal tightrope—balancing growing spending demands with the Treasury’s commitment to stabilising national debt.
Speaking on VOC Breakfast, economist Ulrich Joubert cautioned that while austerity may seem appealing, the priority must be on driving economic growth and job creation.
“He will have to do a very fine balancing act between the demand for extra money from many sectors and departments, and the reality that the economy is simply not performing,” said Joubert.
“We know that the two previous budgets were not finalised because some parties within government said they could not support them. That’s why we’re not seeing a VAT increase now,” he explained.
“As much as the country needs growth, we also need to see the minister being very strict in terms of how funds are allocated and managed.”
VOC News
Photo: @TreasuryRSA/X
