Latest news with #RevenueandAppropriationsBills
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.
IOL News
24-04-2025
- Business
- IOL News
Godongwana's VAT reversal plunges parliamentary programme into turmoil
Parliament will review its current programme once it received more details after Finance Minister Enoch Godongwana announced the reversal of VAT increase Image: IOL Finance Minister Enoch Godongwana's decision to reverse the 0.5% VAT increase in the 2025-26 budget and to withdraw the Revenue and Appropriations Bills has plunged the programme of Parliament into disarray. The announcement has raised alarm among opposition parties and sparked potential legal action from the MK Party if the fiscal framework containing VAT increase was not sent back to the standing committee on finance. On Thursday, National Assembly Speaker, Thoko Didiza, told MPs that her office has been made aware of Godongwana's intention to introduce a VAT rate and amendments to the Revenue Bill that will propose retaining the current VAT amount instead of an increased amount announced in March. 'The minister will withdraw the Division of Revenue and Appropriations Bills in order to propose expenditure adjustments. It is expected that the minister will introduce new bills in the forthcoming weeks,' said Didiza in a statement read by House chairperson Cedric Frolick during the meeting of the National Assembly Programme Committee. Didiza said the development would definitely have obvious consequences for Parliament and the programme of the National Assembly. 'The effect of this is the review of the parliamentary programme as it currently stands. Once more details are obtained the whips will meet, followed by programme committee where a revised programme will be put up for consideration by members of the programme committee,' she said. When the programme was up for discussion, ANC MP and programme whip, Cameron Dugmore, noted that the turn of events would have serious amendments to the parliamentary programme. 'In terms of dealing with details of the programme now in this meeting, given we need to get points of clarity and also opportunity as parties to engage on the matter, I want to ask guidance whether I should proceed with the programme as it is,' he said. 'It does not include the possible amendments. It was developed without reality of amended fiscal framework. I propose we don't go to this programme but engage at chief whips forum and next Thursday propose to Speaker to convene the programme committee again,' Dugmore said. MK Party MP, Visvin Reddy, agreed with Dugmore. Reddy said apart from the bills to be withdrawn, the fiscal framework that contained the VAT increase has been withdrawn too. 'If not done legally sound, we as the party will take this matter to court. We are not a spaza shop operation,' Reddy said. Frolick said there were a number things that will change on the programme. 'As soon as further information becomes available from the minister of finance on withdrawal and tabling of new budget instruments, it will immediately be communicated and the chief whip forum and finally National Assembly Programme Committee will reflect on that,' he said. Frolick also said the scheduled vote of the Division of Revenue Bill on May 6 will fall off. 'The intention of the minister and the letter we received is quite clear, the item will not be proceeded with,' Frolick added. However, EFF MP Hlengiwe Mkhaliphi said the chief whip's forum meeting to be held next Wednesday was too far and the meeting on Wednesday had anticipated a change to the programme after the court made a ruling next week. 'Let's meet as soon as possible even if it is tomorrow,' she said. Mkhaliphi said the saga could have been avoided had the letter her party complaining about the irregularities in the adoption of the fiscal framework by the standing committee was considered. Her colleague Natasha Ntlangwini said Godongwana could not just announce the withdrawal of the bills. 'It ought to come to Parliament to do the reversal. The minister can't say 'I reverse'. It can't happen. It must come and only Parliament reevaluate the decision it has taken, not the minister at Union Buildings,' she said. Ntlangwini raised concern about the change to the programme on other business of Parliament such as the oral questions to Deputy President Paul Mashatile and debates to be discussed. ANC chief whip, Mdumiseni Ntuli, said the current programme should be re-affirmed until Didiza advised on the implications of Godongwana. 'We will reflect what is required on our part to take intervention on board. It was Parliament that voted on 2 April to adopt the fiscal framework that within 30 days,' Ntuli said. He also said Parliament should wait for a report from the leader of Government Business, Mashatile, and Didiza on practical implications of the statement made by Godongwana and how to accommodate the process in the programme. Frolick said apart from the budget, there was other work Parliament should attend to. 'The programme for the next two weeks is confirmed. The item on the Division of Revenue Bill on May 6 falls off,' he said. Mkhaliphi's push for an urgent meeting to consider parliamentary programme fell on deaf ears. 'We have powers as MPs and programme committee must convene an urgent meeting,' she said, adding it was not acceptable to pretend everything was fine when there was no budget. But Frolick said Didiza treated the matter with the necessary seriousness. 'She will as soon as she has relevant information to share,' he said.
