Budget 2025, President Cyril Ramaphosa Set to Chair Special Cabinet Meeting to Discuss Controversial Budget

A SOUTH AFRICA, OMIKAMI-TV - President Cyril Ramaphosa will chair a special Cabinet meeting in Cape Town at 2pm on Monday to discuss the controversial Budget, sources said. (24/02/2025)

This comes after the Budget was postponed last week until March 12 amid disagreements between partners of the government of national unity (GNU) over a proposed two per cent VAT increase.

Sources have told the media that the meeting will only discuss the Budget.

Meanwhile, Ramaphosa used his weekly bulletin on Monday to say:

"The last-minute delay is unfortunate," he said.

He reiterated that Cabinet decided to delay the presentation of the Budget to allow for further discussion on areas of disagreement among the GNU parties.

"It is therefore imperative that the various issues raised by the various parties regarding the Budget are addressed appropriately, in the interests of accountability, transparency and consensus building," he said.

He added that, "It is understandable that this new arrangement will require a different approach on some matters. The process of reaching agreement among the political parties in the GNU is still ongoing, but we will certainly get there.

"Differences of opinion, contradictions and policy differences are inherent in a government made up of several political parties," he explained.

Despite the differences of opinion among the parties on various matters, he said, "the middle ground remains".

"It is a sign of a healthy and strong democracy that such differences can emerge from time to time and be aired publicly. Such differences do not mean that the GNU is in crisis. They mean that democracy is working,” he stressed.

He also stated that, “A government of national unity, by its very definition, implies consensus building. No one party can impose its will. There needs to be comprehensive deliberation and meaningful engagement,” he said.

Ramaphosa added that he was confident that, “political parties will once again find each other,” he added.

Ramaphosa also addressed the issue privately at the first G20 Foreign Ministers’ Meeting at Nasrec in Johannesburg last Thursday.

At the time, he said that he was confident that the “unprecedented difficulties” South Africa was experiencing would be resolved, adding that the issue should not be viewed as a crisis.

Previously

For the first time since 1994, the budget speech has been postponed. It will now be delivered on March 12.

The disagreement that led to the postponement was over a 2 percentage point increase in VAT, which would have taken it from 15% to 17%.

In recent days, several political parties have opposed the VAT increase, as have trade unions, lobby groups and civil society organisations.

As previously noted, the postponement is a crucial moment for the DA’s role and power in the GNU.

At a press conference, Minister for the Presidency Khumbudzo Ntshavheni sought to portray the decision as a collective decision by Cabinet, not the result of pressure from one party.

To say that, “The DA has forced a delay is a ‘completely wrong’ assumption,” he told a press conference (19/02), adding that, “Even ANC ministers are against the proposed increase. It is not a ‘DA vs ANC’ decision, but a ‘Cabinet decision,’” he stressed.

However, the DA clearly sees the delay as a political victory, releasing a statement saying that it “demonstrates the strength of the DA in the Government of National Unity.”

On the other hand, the EFF and MK argued that the budget should have been presented so that Parliament could at least hear Treasury’s plans.

(Jairus Mmutle/GCIS) OMIKAMI-TV