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Daily Maverick
6 hours ago
- Business
- Daily Maverick
‘This is about growth' — fiscal framework sails through National Assembly
The 2025 fiscal framework and revenue proposals were adopted by both Houses of Parliament on Wednesday, nearly four months after the first planned attempt to table a Budget. Finance Minister Enoch Godongwana says it's now up to MPs to exercise their oversight and make sure the Budget is spent correctly. After a protracted process, South Africa is one step closer to finally passing a Budget after both Houses of Parliament approved the fiscal framework on Wednesday — but not without the usual party political jabs. Finance Minister Enoch Godongwana told the sitting, 'We have had a painful journey to arrive at this date, where the fiscal framework is being approved. It has been a painful journey. Definitely, from the [perspective of the National Treasury] we have drawn a number of lessons. 'But I suspect, also members of this House must draw a number of lessons as to how in practice we are going to manage the debates around the fiscal framework moving forward.' Godongwana said it was up to MPs to ensure the Budget was spent correctly. 'You can't fault this Budget — if it's not spent properly, that's your duty as members of Parliament to do your oversight,' he said. He was responding directly to a point made by National Coloured Congress MP Fadiel Adams about allocations within the Budget and how they could be spent. 'That should be the concern of this moment,' said Godongwana, who, since February, had attempted to pass a Budget. On Wednesday, 268 MPs voted in favour of the fiscal framework, while 88 were against it and two abstained. The ANC and the DA voted in favour of it. The MK party and the EFF voted against it, while Build One South Africa (Bosa) abstained from voting. Bosa's deputy leader, MP Nobuntu Hlazo-Webster, said the party had abstained because it was 'not a Budget that we can support. 'It's a Budget that is still not a good Budget in any way. It is still a Budget that ultimately punishes South Africans for the sins of the ANC,' she said. 'We absolutely want to see more catalysts for economic growth in the Budget… We gave alternatives — we proposed alternatives — that could look different for income generation for the state versus actually burdening South Africans further.' Hlazo-Webster said the National Treasury had not considered any of Bosa's proposals on income generation in the Budget. 'Ultimately, what this means is that the ANC's not listening to the people,' she said. 'This is still a very tax-heavy Budget, it's a stagnant budget. It's a Budget that doesn't speak to how [to] grow South Africa's economy. 'Shared vision of cooperation' The fiscal framework is a key step in the budgeting process; it establishes economic policy and revenue projections and sets the overall limits to government spending. This report must be adopted within 16 days from when Godongwana tables the Budget. The next phase in the budgeting process is the passing of various Bills, including the consideration and adoption of the Division of Revenue Bill and the Appropriation Bill. The ANC and the DA found common ground in Parliament's Standing Committee on Finance last week, both voting for the committee to adopt the framework report, Daily Maverick reported. Only the EFF and MK party rejected the report. When asked whether the ANC and DA — South Africa's two biggest parties — had now found each other after their previous public disagreements over the Budget, DA spokesperson Karabo Khakhau said: 'We've always maintained if we're agreeing on something and we're getting along and there is a shared vision of cooperation, then it would be easy for us to be able to pass through hurdles like the one of the fiscal framework now. 'The point of contention in the past that we've had, we've been able to deal with, so that's why there's a more open approach towards engagements, and that's what we've always wanted.' Khakhau said the party had wanted to see that issues of waste expenditure, ghost employees and infrastructure investment were being addressed. 'At the heart of why the DA is in the GNU is to make sure that we're able to grow the economy to alleviate poverty and make sure that people have jobs,' she said. Politics across the aisle On Wednesday, politics did not stop as the framework was passed, and the National Assembly Speaker, Thoko Didiza, had to call several MPs and political parties to order during the discussion. A loud cheer of 'weekend special' was heard from the ANC caucus when MK party spokesperson on finance, Des van Rooyen, spoke — in reference to his weekend stint as finance minister. When the Patriotic Alliance's Ashley Sauls spoke in favour of the report, MK party and Economic Freedom Fighters MPs shouted 'Free Palestine' in reference to the party visiting Israel for a ' fact-finding ' mission amidst Israel's ongoing assault on Gaza. ActionSA's Alan Beesley said he was 'proud' of the role his party played in the VAT hike reversal. From the DA seats, one MP shouted: 'No deal this time around, Beesley'. The EFF also tried to claim victory for the reversal. DM
IOL News
10 hours ago
- Business
- IOL News
News you should know tonight: Top 5 stories you may have missed on June 11, 2025
Embattled power utility Eskom has revealed that 87% of municipalities approved for National Treasury's municipal debt relief program are failing to meet the conditions required for debt write-offs, with only 10 out of 71 municipalities remaining compliant. Good evening, IOL News family! It's Tuesday, June 3, 2025, and it's time for a wrap of the biggest headlines making waves in South Africa and beyond. Don't forget to join the IOL WhatsApp Channel to stay in tune, informed, and in the know. Death toll from Eastern Cape floods rises to 49, confirms Premier Mabuyane The death toll from the devastating floods in the Eastern Cape has climbed to 49, Premier Oscar Mabuyane confirmed during a media briefing on Wednesday, describing the situation as one of the most painful tragedies to hit the province in recent years. To read on, click here. Most municipalities flouting Eskom debt relief terms, warns utility Embattled power utility Eskom has revealed that 87% of municipalities approved for National Treasury's municipal debt relief program are failing to meet the conditions required for debt write-offs, with only 10 out of 71 municipalities remaining compliant. To read on, click here. Municipalities in fiscal turmoil as appropriations committee scrutinises financial mismanagement The Standing Committee on Appropriations has raised an alarm over the dire financial state of metropolitan municipalities during a recent engagement with the Mangaung Metropolitan Municipality in the Free State, as part of discussions surrounding the 2025 Division of Revenue Bill. To read on, click here. R32 million spent on Gauteng road upgrade 'that only exists on Google Maps' The Gauteng provincial roads and transport department is under fire after revealing spending over R32 million upgrading a stretch of Evaton Road in the Vaal, yet the area has nothing to show for it. To read on, click here. Your Netflix package just got more expensive in 2025 - this is how much you will pay South African Netflix users will once again have to dig deeper into their pockets, as the global streaming giant has increased the prices of its Mobile, Standard, and Premium plans in the country. To read on, click here. Get your news on the go, click here to join the IOL News WhatsApp channel. IOL News
IOL News
11 hours ago
- Business
- IOL News
Municipalities in fiscal turmoil as appropriations committee scrutinises financial mismanagement
The Standing Committee on Appropriations has raised an alarm over the dire financial state of metropolitan municipalities Image: Supplied The Standing Committee on Appropriations has raised an alarm over the dire financial state of metropolitan municipalities during a recent engagement with the Mangaung Metropolitan Municipality in the Free State, as part of discussions surrounding the 2025 Division of Revenue Bill. The committee's session focused on the pressing fiscal challenges exacerbated by unfunded mandates and poor financial management practices that continue to plague these vital urban areas. One of the major points of contention was the late submission of critical documents by the City of Johannesburg, which arrived a mere 30 minutes before the meeting commenced, limiting the committee's ability to review and discuss its contents thoroughly. In response, the committee has resolved to reconvene with Johannesburg next week in hopes of addressing these concerns in detail. Particular emphasis was placed on the financial practices at the Mangaung Municipality, where several directorates are reportedly overspending their approved annual allocations by an alarming 10 to 12 per cent. Much of this overspend can be traced back to bloated employee costs and outsourced contracted services. Committee members expressed their alarm at the continuing trend of outsourcing fundamental municipal responsibilities, arguing it undermines institutional capacity and invites potential misuse of funds by service providers. Committee chairperson Mmusi Maimane did not mince words, highlighting the pervasive threat of corruption that continues to inflate service delivery costs. 'What should cost one rand ends up costing three, four or even five rands due to corrupt practices,' he emphasised. The committee is firmly of the view that addressing corruption is essential to restoring financial integrity and ensuring that funds are used effectively for public services. In a stern reminder of the consequences of mismanaged resources, the committee pointed to Mangaung's failure to achieve unqualified audit outcomes for the last three consecutive years. The Auditor-General's reports have consistently pointed to significant financial management deficiencies, including weak internal controls and governance failures that undermine public trust. Members of the committee urged Mangaung to clarify its outstanding debts to Eskom, emphasising the urgency of reporting on any progress made in tackling these fiscal obligations. Maimane further lamented the broader decline of metropolitan municipalities across the country, particularly focusing on the deteriorating conditions in inner-city areas. He warned that such decline leads to a profound loss of housing opportunities and vital economic infrastructure, exacerbating already strained urban living conditions. As part of its discussions, the committee issued a pointed reminder to municipal officials to prioritise basic service delivery, which includes repairing potholes, installing traffic lights, ensuring reliable water access, and maintaining clean sanitation facilities in informal settlements. IOL
IOL News
03-06-2025
- Business
- IOL News
Western Cape Finance MEC ensures stability with R89. 3 billion budget despite national challenges
Western Cape Finance MEC Deidré Baartman delivers the 2025 Budget Speech in the Provincial Parliament. Western Cape Finance MEC Deidré Baartman re-tabled the province's R89.3 billion Appropriations Bill after the national government unexpectedly withdrew its budget, including the legally binding Division of Revenue Bill. Addressing the Western Cape Provincial Parliament, Baartman clarified that although the process had to be repeated for legal compliance, 'nothing in substance in the Western Cape Appropriations Bill has changed.' The 2025/26 Western Cape Budget still allocates a total of R269.5 billion over the next three years, with more than 80%, or R215.8 billion, dedicated to social services. This includes R101 billion for education, R100 billion for health, R6.4 billion for housing, and R8.4 billion for social protection.
IOL News
03-06-2025
- Business
- IOL News
Western Cape Finance Minister re-tables R89. 3 billion Appropriations Bill as national budget faces uncertain future
Western Cape Finance MEC Deidré Baartman delivers the 2025 Budget Speech in the Provincial Parliament. Image: Supplied Western Cape Finance Minister Deidré Baartman re-tabled the province's R89.3 billion Appropriations Bill after the national government unexpectedly withdrew its budget, including the legally binding Division of Revenue Bill. Addressing the Western Cape Provincial Parliament, Baartman clarified that although the process had to be repeated for legal compliance, 'nothing in substance in the Western Cape Appropriations Bill has changed.' The 2025/26 Western Cape Budget still allocates a total of R269.5 billion over the next three years, with more than 80%, or R215.8 billion, dedicated to social services. This includes R101 billion for education, R100 billion for health, R6.4 billion for housing, and R8.4 billion for social protection. In terms of strategic spending, the province is staying the course on its four apex priorities: R43.8 billion to 'Growth for Jobs,' R3.9 billion to safety, R194.9 billion to build an 'Educated, Healthy and Caring Society,' and R23.4 billion to innovation, culture, and governance. 'In light of this,' said Baartman, 'the doors of the Western Cape Government have, and will continue to, remain open.' Despite the chaos at a national level, Baartman assured residents that essential services would remain intact, crediting this stability to provincial fiscal discipline. 'Despite the uncertain fiscal environment, the Western Cape Government can assure this house that we have kept strict protocols in place on cash flow management in the province to ensure service delivery continues uninterrupted,' said Baartman. She also acknowledged the tireless work of officials during this turbulent period. '2025 has really seen us exercise our legal and procedural muscles within the uncertain fiscal space nationally, and I would like to thank the Provincial Treasury team as well as the Legal team in the Department of the Premier for their assistance and guidance throughout this process.' Looking ahead, Baartman expressed hope for a smoother national budget process next year. 'For certainty, fiscal stability and trust, it is my sincere hope that the national budget process for 2026 will flow more effortlessly.' IOL News
