Latest news with #2025BudgetReview
The South African
21-05-2025
- Business
- The South African
Budget Speech 3.0
Minister of Finance Enoch Godongwana is set to return to parliament on Wednesday afternoon to officially re-table the 2025 Budget Review, following significant revisions to key fiscal policies. The updated budget presentation, scheduled for 14:00 during the National Assembly plenary at the Cape Town International Convention Centre (CTICC), comes after the minister's recent decision to scrap the proposed 0.5 percentage point increase in Value-Added Tax (VAT). The VAT rate will remain at its current level of 15%. According to a statement from the National Treasury, the revised budget has been developed in line with the Money Bills and Related Matters Act, incorporating: Consultations with the Financial and Fiscal Commission Engagement with political parties in the Government of National Unity And full Cabinet approval prior to tabling The revised fiscal framework aims to maintain the country's path toward debt stabilisation, a central pillar in safeguarding South Africa's financial stability. The Treasury confirmed that the process included: Updating economic assumptions using the latest data Revising fiscal projections Recalculating revenue forecasts and tax implications Strategising borrowing approaches And consolidating these components into a sustainable financial roadmap Wednesday's speech is expected to provide clarity on how the government will balance fiscal discipline with economic growth and social spending priorities in a challenging global and domestic economic environment. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The South African
21-05-2025
- Business
- The South African
Here's what time Enoch Godongwana will deliver the Budget Review on Wednesday
Minister of Finance Enoch Godongwana is set to return to parliament on Wednesday afternoon to officially re-table the 2025 Budget Review, following significant revisions to key fiscal policies. The updated budget presentation, scheduled for 14:00 during the National Assembly plenary at the Cape Town International Convention Centre (CTICC), comes after the minister's recent decision to scrap the proposed 0.5 percentage point increase in Value-Added Tax (VAT). The VAT rate will remain at its current level of 15%. According to a statement from the National Treasury, the revised budget has been developed in line with the Money Bills and Related Matters Act, incorporating: Consultations with the Financial and Fiscal Commission Engagement with political parties in the Government of National Unity And full Cabinet approval prior to tabling The revised fiscal framework aims to maintain the country's path toward debt stabilisation, a central pillar in safeguarding South Africa's financial stability. The Treasury confirmed that the process included: Updating economic assumptions using the latest data Revising fiscal projections Recalculating revenue forecasts and tax implications Strategising borrowing approaches And consolidating these components into a sustainable financial roadmap Wednesday's speech is expected to provide clarity on how the government will balance fiscal discipline with economic growth and social spending priorities in a challenging global and domestic economic environment. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
The Citizen
30-04-2025
- Business
- The Citizen
Finance minister sets 45% spending cap ahead of new budget
Provinces and municipalities are allowed to spend 45% of last year's fiscus before the retabling of a new national budget without VAT in the next month. This was announced by Finance Minister Enoch Godongwana this afternoon (Wednesday), informing all stakeholders that National Treasury will retable the 2025 Budget Review on Wednesday, 21 May. The comprehensive review will include the Fiscal Framework, Appropriation Bill, Division of Revenue Bill, and the already-tabled Rates and Monetary Amounts and Amendment of Revenue Laws Bill. ALSO READ: Contentious VAT hike scrapped This decision follows Godongwana's recent announcement and subsequent request to the speaker of the National Assembly to maintain the VAT rate at its current level of 15%, reversing the previously proposed 0.5 percentage point increase presented in the previous budget. 'The revised budget will adhere to all established technical processes and consultations as set out in the Money Bills and Related Matters Act. 'This includes formal consultations with the financial and fiscal commission, thorough consultations with all political parties within the GNU, as well as Cabinet approval before presentation to Parliament,' said Godongwana. He added that until the new budget is passed, government services will continue to be funded under Section 29 of the Public Finance Management Act. 'This allows spending of up to 45% of last year's budget during the first four months, and up to 10% for each month after that. 'While we wait for the 2025 Division of Revenue Act to be passed, funding for provinces and municipalities will continue under the 2024 Act, allowing transfers of up to 45% of their allocated funds,' said Godongwana. He added that, while the postponement of the budget's passage is not ideal, the circumstances leading to this decision have highlighted the importance of meaningful engagement on fiscal matters. ALSO READ: 2025 Budget breakdown: VAT, grant increases unpacked 'This situation has provided a valuable opportunity for all stakeholders citizens, members of parliament, labour organisations, and civil society to thoroughly engage with the complex challenge of achieving fiscal sustainability while promoting economic growth and protecting essential public services within very limited resources,' said Godongwana. He said National Treasury has already commenced work on developing a new fiscal framework that will maintain the country's trajectory toward debt stabilisation, a crucial element in strengthening the public finances. Don't have the ZO app? Download it to your Android or Apple device here: HAVE YOUR SAY Like our Facebook page and follow us on Twitter. For news straight to your phone invite us: WhatsApp – 060 784 2695 Instagram – zululand_observer
