Latest news with #MoneyBillsandRelatedMattersAct
IOL News
22-05-2025
- Business
- IOL News
Political parties 'don't want a repeat' of Budget drama
Scopa chairperson Songezo Zibi said parties in the GNU will ultimately support the budget. Image: Supplied The chairpersons of standing committee on public accounts and appropriations are confident that the 2025/26 Budget will be passed by Parliament by the end of next month. This after Finance Minister Enoch Godongwana tabled a revised budget on Wednesday after he withdrew the Revenue and Appropriations Bills last month in order to propose expenditure adjustments amid a court case by the DA and the EFF, as well as negotiations between the ANC and some of the smaller parties. Speaking during a media briefing by chairpersons of finance cluster committees, Scopa chairperson Songezo Zibi said part of the consultation by Godongwana with Government of National Unity leaders was to give a detailed presentation on what was in the Budget. 'Unless something changes this morning, subject to the amendment that Parliament has to make as part of the appropriation process, the parties in the GNU will ultimately support the Budget. So it will pass. We will not have this scenario where the Budget does not pass,' Zibi said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ He warned that were they to get to a point of being irresponsible, civil servants won't be paid their salaries. 'I don't think we should get there,' said Zibi, who is also the leader of Rise Mzansi. Standing committee on appropriations chairperson Mmusi Maimane says there is political will to make sure the budget passes. Image: Itumeleng English / Independent Newspapers His sentiments were echoed by standing committee on appropriations chairperson Mmusi Maimane. 'It will pass, I can give that assurance. There is political will to make sure it passes. I don't think there is a single party that wants to see the drama of the last number of months,' he said. Maimane, who is also the leader of Build One South Africa, said the question was not that the budget will be rejected, but whether Parliament can amend it. 'We should see a picture of how we amend the budget consistent with the Money Bills and Related Matters Act. The way to do that is to obsess, not about the current financial year but about the inner and outer years,' he said. Maimane said he was impressing on members of the appropriation committee to think about the adjustment they could propose in the event Godongwana makes announcements during the upcoming Medium Term Budget Policy statement later this year. Parliament has until the end of July to pass the budget. Failure to do so will result in the temporary expenditure by government based on previous year's allocation being reduced from the permissible 40% to 10%. Addressing journalists before the Budget was tabled on Wednesday, Godongwana emphasised the importance of passing the Budget, saying the 10% to be spent was less than the public service wage bill. 'If we don't finish the budget by the end of August, we are going to experience what the Americans experience, which is closing government,' Godongwana said. Parliament's standing committee on finance chairperson Joe Maswanganyi says Parliament has the power to amend the budget, like any other legislation. Image: FIle Asked what the standing committee on finance would do differently to ensure the fiscal framework report did not lead to a legal challenge, committee chairperson Joe Maswanganyi defended their decision to adopt the report, a move that had prompted the EFF and the DA to approach the Western Cape High Court. Maswanganyi said MPs had raised views with a mandate from their political parties. 'That meeting voted for a fiscal framework report. The majority voted. If other members are not happy, it is up to them. They have to win elections next time, that is the rule of the game,' he said. 'The National Assembly adopted the fiscal framework report on that day. That's how we run Parliament,' he said. Asked whether they shared the same sentiments with Godongwana, that the process to amend the budget was cumbersome, Maswanganyi would only say that they can amend it. 'It is the legislation of Parliament. Like any legislation, it can be amended,' he said. But, Maimane noted that it was difficult to amend the budget due to the tight timeframes set out in the Money Bill and Related Matters Act. He outlined some of the procedures to be followed within a short time before the passing of the budget was finalised. Maimane also said the timelines for the Money Bill and Related Maters Act needed to be adjusted to give power to Parliament to amend the Budget and also add capacity to the Parliamentary Budget Office to do research.
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.
IOL News
30-04-2025
- Business
- IOL News
South Africa's Budget Speech Set for 21 May: Key Insights from Finance Minister Godongwana
Finance Minister Enoch Godongwana announced on Wednesday in a media briefing that the third Budget speech will take place on 21 May. Image: Picture supplied Finance Minister Enoch Godongwana announced on Wednesday in a media briefing that the third Budget speech will take place on 21 May. The announcement comes following the 0.5 VAT reversal announced last week by the Treasury, which was proposed in the March 2025 Budget and the matter being taken to court by the Democratic Alliance (DA) and Economic Freedom Fighters (EFF). Minister Godongwana also announced that he and the Treasury would not be taking any questions regarding the preparation of the third budget speech until 21 May. Godongwana said that the Budget of 12 March 2025 and the proposed VAT increase sparked rigorous debate. 'This is welcomed in a healthy democracy. Today there is clarity that VAT will remain at 15%. This decision was shaped not only by political debate but by the voices of the South African people.' Godongwana added that we are all new in South Africa to what is called coalition politics. 'There are lessons to be learnt by cabinet, legislature and ourselves. I'm pleased that we have agreed that we will balance the budget without raising VAT while protecting vital sectors such as education, health, and social grants.' Godongwana said that the National Treasury has already commenced work on developing a new fiscal framework that will maintain their trajectory toward debt stabilisation, a crucial element in strengthening our public finances. '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 Government of National Unity (GNU), as well as Cabinet approval before presentation to Parliament.' Godongwana added that this comprehensive review will include the Fiscal Framework, the Appropriation Bill, Division of Revenue Bill, and the already tabled Rates and Monetary Amounts and Amendment of Revenue Laws Bill. '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 per cent of last year's budget during the first four months, and up to 10 per cent for each month after that.' Godongwana said 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 per cent of their allocated funds. '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.' Godongwana added that 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. Godongwana said that the revised process includes: Revising economic assumptions using the latest available data Generating updated fiscal projections Recalculating revenue projections and tax implications Determining appropriate borrowing strategies Consolidating these elements into a coherent and sustainable fiscal framework. Godongwana added that they will soon develop a new consultation process for the Budget speech to accommodate the GNU. 'This process will start in September before the Medium-Term Budget Policy Statement (MTBPS). The MTBS is a key milestone as it shapes the content of the February budget.' Professor Andre Thomashausen, a renowned expert in international law from the University of South Africa, said that the survival of the GNU is crucial to safeguarding South Africa's reputation as a reliable trading partner and safe investment destination. 'The VAT compromise is a small price to pay for giving the GNU a longer chance to fix the many governance issues that the GNU inherited. It is positive that the VAT debate has now encouraged a more rigorous engagement to combat corruption and the wasting of funds in the upkeep of mismanaged State Owned Enterprises.' Johann Els, Old Mutual Group chief economist, said that the cancellation of the VAT rate increase has created a R75 billion funding gap over the next three years, putting pressure on the Treasury to maintain its fiscal consolidation targets. 'These include narrowing the budget deficit from -5.0% to -4.6%, raising the primary surplus from +0.5% to +0.9%, and peaking the debt-to-GDP ratio at 76.2% this year.'
TimesLIVE
30-04-2025
- Business
- TimesLIVE
Third time lucky? Godongwana announces a third date for 2025 budget
Finance minister Enoch Godongwana says he will table the third attempt for the 2025 budget on May 21 after months of discord over his VAT hike proposal. Speaking to reporters in Pretoria on Wednesday afternoon, the minister said he sent a formal request to National Assembly Speaker Thoko Didiza to allow the budget to be tabled in mid-May. "The ministry remains committed to transparent communication throughout the process and will provide further updates as they become available. We owe it to the hardworking citizens of SA to be open and transparent about how tax money is spent. The budget that will be tabled on May 21 will aim to maintain the principles." The minister has made two attempts to table the 2025 budget. In February he planned to propose two VAT hikes for 2025 and 2026, but resistance to the proposal from parties in the government of national unity (GNU) and parliament forced the minister to delay the budget and return in March. The minister tabled a March budget that allowed for two 0.5 basis point VAT increases. While the second version of the budget was tabled, the DA and the EFF challenged its passage by the standing committee on finance and the VAT Act at the Western Cape high court as unconstitutional. Godongwana said the revised budget will adhere to all established technical processes and consultations as set out in the Money Bills and Related Matters Act, consultations with the Financial and Fiscal Commission and all political parties within the GNU. "Until the new budget is passed, government services will continue to be funded under 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." He said while National Treasury waits 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. During the briefing, Godongwana was asked if he would resign or if he expected President Cyril Ramaphosa would remove him after the chaotic wrangling around the budget. "That decision does not lie with me. It lies with the president. But I am mindful the president has been a part of the process. I don't think that is a question for me." He said if any credibility issues arise for the markets, it will not arise based on the VAT hike reversal, but on the final product tabled in parliament later this month.
