Q: Why was the budget speech postponed
- Cabinet requested the postponement of the tabling of the 2025 National Budget to allow for further discussions.
- While the National Budget speech is delivered by the Minister of Finance, it is a collective document agreed on by Cabinet.
- The postponement allows for further engagement on the country’s finances.
- This collective decision gives Cabinet ministers more time to engage on various trade-offs to fund the fiscus.
Q: What purpose does the national budget serve
- The National Budget must strike a balance between protecting the wellbeing of citizens, economic growth and fiscal sustainability.
- The deeper interrogation on how best to fund national priorities will ensure that the budget reflects the aspirations of South Africans.
Q: What does this mean for the government of national unity
- Since its establishment, the Government of National Unit has through its three strategic priorities placed the best interests of South Africans at the heart of its work, despite coming from different party-political backgrounds.
- The further deliberations demonstrate a robust democracy under the Government of National Unity.
- The postponement is a responsible decision taken to ensure consensus is reached by GNU partners.
- The GNU Statement of Intent commits all parties to pursue rapid, inclusive and sustainable economic growth, create a more just society by tackling poverty and strengthen the capacity of the state, to deliver services for all South Africans.
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- While the postponement of the Budget Speech is unprecedented, it demonstrates a National Executive at work to deal with the country’s economic challenges.
- The further deliberations are a healthy sign that different voices are being taken into account, and innovative solutions are explored.
- The multi-party government of ten political parties from across the political spectrum remains united by a common goal to move our nation forward, collaborating on matters that are in the best interest of the country.
Q: Why the need for consensus.
- Consensus on funding and dealing with the economy will ensure the smooth processing of the National Budget in Parliament.
- In order for a National Budget to come into effect, it is required to pass through a majority vote in Parliament.
- Weighing the postponement against the budget failing to receive Parliament’s approval means valuable time and resources are saved.
Q Is the postponement to 12 March 2025 within legislative timelines.
- The Financial Management Acts require the National Budget be tabled ahead of the new financial year on 1 April 2025.
- In exceptional circumstances, the act also allows for the tabling of the National Budget as soon as possible after the start of the new financial year.
- In such instances, government departments continue to function as normal, based on limits from their previous year’s budget.
- Two weeks after the tabling of the National Budget, provinces are required to table their provincial budgets.
- The process will now begin with the technical budget process, followed by the Cabinet process and the tabling of the National Budget to Parliament on 12 March 2025.
Q: Will the postponement impact South Africa’s G20 commitments.
- South Africa is ready to welcome G20 participants to the various engagements being held in the country.
- These events are part of the working of a robust democracy.
- South Africa is a nation that negotiates matters and continues to find meaningful ways to deal with issues in a mature manner.
- The country is ready to welcome foreign ministers and senior diplomats for the G20 Foreign Minister’s meeting in Johannesburg.
- G20 Finance Ministers and Central Bank Deputy Governors are also planned to meet in Cape Town this month.
The postponement of the 2025 National Budget Speech reflects the South African Government’s commitment to thorough financial planning and consensus-building. While unprecedented, this decision prioritises responsible governance, ensuring that the budget aligns with national priorities.
