South Africa: Cabinet Approves Reworked Budget

The 2025 budget has been approved after intense deliberations and was finalized following efforts by a team led by Deputy President Paul Mashatile, supported by the National Treasury, reports IOL.

Finance Minister Enoch Godongwana was tasked with selecting funding options that balance fiscal constraints, protect low- and middle-income households, and support economic growth. The process was marked by tension, as Cabinet members recognized the budget’s far-reaching impact on South African families.

Earlier proposals, including a 2% VAT increase, were rejected due to concerns over their financial burden on citizens, prompting President Cyril Ramaphosa to establish a ministerial team to refine the budget.

The budget had been postponed twice, with parties like the Democratic Alliance opposing tax hikes, arguing they would strain South Africans financially. Godongwana and the National Treasury are set to present the finalized budget to Parliament on March 12.

By Allafrica