Latest news with #RevenueProposals
News24
3 days ago
- Business
- News24
Fiscal framework passed with DA's support
On Wednesday at 14:00 both Houses of Parliament - the National Assembly (NA) and the National Council of Provinces (NCOP) - will consider the 2025 Fiscal Framework and Revenue Proposals. This framework outlines economic policy and revenue projections, setting the overall limits for government spending.
IOL News
3 days ago
- Business
- IOL News
Godongwana urges MPs to ensure proper expenditure of R1 trillion infrastructure budget
The report on the Fiscal Framework and Revenue Proposals easily garnered the majority vote from the Government of National Unity partners and other smaller parties. Finance Minister Enoch Godongwana on Tuesday challenged parliamentarians to ensure that the R1 trillion allocated for infrastructure in the 2025/26 budget was spent efficiently and effectively. Speaking moments before the vote on the Fiscal Framework and Revenue Proposals and report of the standing committee on finance, Godongwana said he has discharged his responsibility. 'MPs have to make sure that this R1 trillion on infrastructure is spent effectively and efficiently,' he said. His comment was a sequel to the remarks by National Coloured Congress leader Fadiel Adams who sympathised with Godongwana after he was asked 'to pull off a miracle with nothing in revising the budget'. 'That should be the concern of these members … If not spent properly, that is your duty as MPs to do oversight,' he said. The report on the Fiscal Framework and Revenue Proposals was tabled in Parliament for the third time. On Wednesday, the report garnered the majority vote from the Government of National Unity (GNU) partners and other smaller parties. The report was passed with 268 votes in favour, 68 MPs, from the MK Party, EFF and United African Transformation were in opposition and two abstained. Godongwana, who had to redraft the budget and scrap initially proposed VAT increases, said it was a painful journey to have the budget adopted. 'From the National Treasury's perspective, we drew a number of lessons, but I suspect also members of this House must draw a number of lessons as to how we in practice are to manage debate around the Fiscal Framework moving forward,' he said. The passage of the Fiscal Framework and Revenue Proposals was despite the adjustment in the fuel levy, which was criticised by many during the debate. Tabling the report, ANC MP and standing committee on finance chairperson Joe Maswanganyi said Godongwana's third budget presentation underscored a steadfast commitment to fiscal responsibility and transparency. Maswanganyi said the budget adoption process within a coalition government can be quite complex due to the multitude of interests involved as coalition partners often bring diverse priorities, ideologies, and agendas to the table, which can complicate consensus-building efforts. 'Anyone calling for the Minister's head for the budget delay, is out of tune with coalition government dynamics all over the world,' he said in veiled attack on the MK Party, whose motion to censure Godongwana failed on Tuesday. Maswanganyi said during the budget hearings, stakeholders had welcomed the withdrawal of the VAT increase and additional allocations to SARS. 'The stakeholders, however, raised concerns about the proposed adjustments to the fuel levy, the lack of adjustment to PIT (personal income tax) brackets, above-inflation increases in excise duties, the withdrawal of zero-rated food items and the National Treasury's failure to increase Social Relief of Distress grant allocations,' he said. DA spokesperson on finance Mark Burke said his party supported the Fiscal Framework because it reflected some critical breakthroughs for ordinary South Africans. 'This is not a moment for celebration, it is a moment to push even harder for real economic reform that streamlines government, creates jobs and delivers growth,' Burke said. He praised the DA's firm stance against the VAT hike, securing billions in infrastructure investment, a commitment to root out ghost workers and an urgent review of government spending. 'These represents real breakthroughs that protect both the poor and the economy, but they are not enough,' Burke said. MK Party's Des van Rooyen said the GNU has subjected the country to a high fuel levy increase. 'Fuel levy is the most regressive taxing system and far worse than VAT is,' he said. Van Rooyen also said the report refusing their proposal for the introduction of a wealth tax, confirmed that 'the so-called GNU was a platform to protect the wealthy few, using puppets'. The EFF'S Omphile Maotwe said her party rejected the Fiscal Framework that was supported by the GNU, which replaced VAT with 'the regressive fuel levy that will affect the poor and the working class and failed to adjust the personal income tax brackets in line with inflation'. 'The Minister of Finance has declared to increase fuel taxes without even bringing a bill to Parliament. This tax is already in effect. It is a violation of the basic constitutional principle that no tax be imposed without the authority of legislation,' she said. The ACDP's Steven Swart said they welcomed the removal of VAT but it was sadly replaced by the maligned fuel levy hike. 'We will support the report but will be closely monitoring it. We want to be builders, not breakers,' said Swart in backing the Fiscal Framework report. BOSA leader Mmusi Maimane, whose party abstained in the vote, said the obsession should be about the rate of investment brought into the country, saying the projected economic growth was far too low. 'I suggest that we be aggressively declaring economic zones and giving infrastructure support, digital connectivity, efficient public transport and ethical government,' he added.
Eyewitness News
3 days ago
- Business
- Eyewitness News
Parliament gives Fiscal Framework and Revenue Proposals underpinning budget green light
CAPE TOWN - Finance Minister Enoch Godongwana has described the first budget cycle of the Government of National Unity (GNU) as a painful journey. But he's standing by the second version of the budget he presented to Parliament three weeks ago, saying he believes he's delivered an expenditure-and-revenue raising plan that is fiscally sustainable. While opposition parties on Wednesday rejected the Fiscal Framework and Revenue Proposals that underpin the 2025 budget, GNU parties have come out in support of the revised budget, saying it is a product of compromises to achieve much-needed economic growth. This is a relief for Godongwana as his budget blueprint for 2025 has finally passed political muster. Godongwana has acknowledged it's been a tough road that's been paved by political contestation and legal challenges. ALSO READ: 'We've had a painful journey to arrive at this date, where the fiscal framework is being approved. Definitely from the Treasury perspective, we've drawn a number of lessons.' Godongwana has rejected claims from the opposition that this is an austerity budget that's not pro-poor. 'If you look over the last four months, what we've been fighting about is not by how much we cut the budget, it's about how much we are going to increase the budget and how we are going to fund that increase.' The Fiscal Framework has been passed with 268 votes to 88. Parliament's finance committees can now get to work scrutinising the money bills which apportion funding to municipalities, provincial governments and State departments.
Zawya
08-04-2025
- Business
- Zawya
South Africa 2025 Budget revealed: 61% allocated to social needs, says Ramaphosa
President Cyril Ramaphosa this week emphasised the crucial role of the 2025 Fiscal Framework and Revenue Proposals, which were recently passed by Parliament, in driving economic growth and relieving the effects of poverty. The budget – tabled by Finance Minister Enoch Godongwana in Parliament last month – was passed by Parliament last week. 'The 2025 Budget is directed at growing the economy and supporting the livelihoods of our people. 'It is a critical instrument to drive development, eradicate poverty and narrow inequality. At a time of constrained economic growth and narrow fiscal space, the budget must direct sufficient resources to activities that encourage inclusive growth and lay the groundwork for sustained economic recovery. 'It reflects the strategic priorities of the Government of National Unity: inclusive growth and job creation, reducing poverty and tackling the high cost of living and building a capable, ethical and developmental state,' he said. Uplifting the nation The budget has a strong focus on the social wage with 61% of resources directed at, among others, healthcare, education, housing and social grants. 'Over the past 24 years we have implemented an indigent policy under which free water, electricity and sanitation services are provided to qualifying households. 'Social grants, like the childcare, old age and disability grants, are another tool for alleviating poverty. This year, the value of these grants will increase at above inflation. The Social Relief of Distress grant, which has played an important role in poverty alleviation, will also be extended for another year," President Ramaphosa said. As part of improving access to healthcare, the President said there will be a higher allocation of funding to clinics and community health centres. He said government is investing in the recruitment and retention of health personnel, particularly doctors and nurses, and in employing newly qualified doctors after their community service ends. The budget also allocates substantial funding to 'other frontline services such as teachers, police, emergency personnel and the Border Management Authority'. 'Improving educational outcomes is key to community upliftment, development and producing the skills needed by our economy. Budgetary allocations have been made to support teacher training, for expanded mother-tongue bilingual education and for early reading programmes. 'This year sees a substantial investment in early childhood development, reflecting our commitment to establishing a solid foundation for the development of every child,' the President added. Funding for public employment programmes and to support small businesses has also been allocated. Driving growth President Ramaphosa noted sustaining expenditure on the social wage requires 'higher levels of economic growth'. 'The budget allocates considerable resources to encourage infrastructure development, which drives growth and job creation. 'Taken together, up to R1tn will be spent on infrastructure over the medium term. This includes the allocation in this budget of an additional R62bn over the next three years for road maintenance, electricity transmission lines, water and sanitation projects, school infrastructure and to support the ongoing recovery of our rail networks. 'Support is also provided to other growth enhancing measures in the medium term, including incentive programmes in automotive, business process outsourcing, special economic zones, electric vehicle production, clothing and textiles, and other sectors,' he said. South Africa's municipalities will also receive adjusted budget allocations to help them address infrastructure needs and improve service delivery. 'In a challenging economic environment – both locally and globally – this year's budget supports measures to drive growth and relieve the effects of poverty. At the same time, it aims to stabilise public finances and continue to reduce our national debt. 'The budget reflects the priorities of Government's Medium Term Development Plan, a five-year programme of action that prioritises rapid, inclusive growth, creating a more just society and building state capacity. 'At a time when our singular focus must be the South African people, we need to use the limited resources we have to work together for the common good,' Ramaphosa concluded. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
