Budget 3.0 tentatively accepted by some political parties
The Economic Freedom Fighters (EFF) led the charge against the latest version of the 2025 Budget, dismissing it as an 'austerity budget' that offers no meaningful relief to poor and working-class South Africans.
Political parties remain divided over the revised Budget 3.0, tabled by Finance Minister
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Speaking outside parliament, EFF leader Julius Malema said the ANC had failed to use the revision as an opportunity to steer the economy in a more equitable direction.
'The ANC is stuck. They cannot grow the economy,' Malema said. 'This is an austerity budget. They failed to increase the list of zero-rated goods. We don't accept this budget.'
In a statement, the Red Berets said the revised fiscal plan was out of touch with the lived realities of millions of South Africans grappling with rising unemployment, poor public services and stagnant wages.
They criticised the ANC government for ignoring proposals from opposition parties and civil society during the adjustment process.
'This is a budget that ignores the worsening unemployment crisis, fails to address poor economic growth and continues the failed orthodoxy that has plunged our country into austerity, despair and underdevelopment,' the party said.
The EFF also accused the government of misleading the public about the reasons behind the dropping of the proposed VAT increase.
According to the party, this was not the result of stakeholder consultation but rather the outcome of a legal challenge initiated by the Democratic Alliance (DA).
'Not a single alternative revenue-generation mechanism proposed by any political party is present in this third budget, proving once again that the VAT increases were scrapped solely due to court intervention,' the EFF said.
The party has called on the government to increase corporate and land taxes as part of a progressive tax reform agenda. Malema also urged the strengthening of the South African Revenue Service to address tax avoidance and illicit financial flows.
In sharp contrast, the DA's Mark Burke cautiously welcomed the revised budget, describing it as a 'turning of the tide' towards greater fiscal responsibility.
The official opposition, which took the treasury to court over the VAT increase earlier this year, claimed a win in the decision to drop the proposed hike.
'It is a victory for all South Africans that the mooted VAT hike has now finally been removed from the minister's revenue proposals, after the DA court action in this regard,' Burke said.
He added that the absence of new bailouts for struggling state-owned enterprises, along with the maintenance of the current VAT rate, signalled a shift away from reckless public spending.
'Overall, we see this budget speech as a turning of the tide toward growth and investment. It is turning away from unchecked government spending funded by South African taxpayers,' George said.
The Freedom Front Plus echoed the DA's sentiment, with party MP Wouter Wessels describing the budget as 'progressive' and appropriate under the current fiscal constraints.
ActionSA said it was disappointed that there was no additional funding for the National Prosecuting Authority.
'South Africans are tired of paying more while government corruption, mismanagement and waste continue unchecked,' the party said in a statement.
The party also criticised Godongwana's proposed inflation-linked increases to the levy on petrol and diesel to help offset revenue lost from the scrapped VAT hike and to narrow the main budget deficit, which stands at 4.5% of GDP, adding that it was not a pro-poor budget.
The ANC, for its part, has defended the revised budget as a balanced and responsible response to a complex economic environment.
Party spokesperson Mahlengi Bhengu said the adjustments made between the initial budget and the revised version reflect the government's commitment to fiscal sustainability and public consultation.
The finance minister's latest budget is the third version presented this year, following a series of criticisms and a public backlash over the initial revenue proposals.
The revised document includes shifts in spending priorities but remains anchored in the treasury's medium-term fiscal framework, which prioritises debt stabilisation and constrained expenditure growth.
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