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Political Turmoil Deepens as South Africa’s Budget Crisis Unfolds

Neelam Rahim | neelam@radioislam.co.za

3-minute read
21 February 2025 | 14:14 CAT

Enoch Godongwana, South Africa’s finance minister (Photo: Dwayne Senior/Bloomberg via Getty Images) | Background generated with Flux AI (Source – Daily Maverick)

In a move unprecedented in South Africa’s democratic history, the government announced the postponement of the national budget speech, initially scheduled for this week. This marks the first time since 1994 that such a critical event has been delayed, raising concerns over the stability of the Government of National Unity (GNU).

The postponement comes after President Cyril Ramaphosa convened an emergency cabinet meeting following threats from the Democratic Alliance (DA) to reject the budget should the Value-Added Tax (VAT) increase as anticipated. DA leader John Steenhuisen labelled the situation as “tricky,” pointing to the potential fallout from a VAT hike beyond the current 15%.

Build One South Africa (BOSA) spokesperson Roger Solomons voiced deep concerns about the delay in an interview with Radio Islam International, describing it as “deeply troubling” and “a troubling moment for our young democracy.” Solomons criticized the GNU, saying the postponement “demonstrates the chaos within the GNU and exposes its lack of coherent vision for our country.”

BOSA has been vocal in its opposition to a VAT increase, with its leader, Mmusi Maimane, highlighting alternative cost-cutting strategies. “We’re calling for the government to cut costs from VIP protection, ministerial perks, and travel expenses. There’s simply no way South Africans can afford a 2% VAT hike,” said Solomons.

The delay leaves millions of South Africans in limbo, particularly vulnerable groups awaiting announcements on social grants and pension increases. “People are on the edge of survival,” Solomons noted, stressing the urgency for clarity on essential social services. Without a confirmed budget date—though March 12 has been tentatively mentioned—uncertainty looms over sectors like healthcare and education, potentially destabilizing the economy further.

As the rand weakens amid the political turmoil, BASA demands transparency from the government. “The President must take South Africans into his confidence and explain this delay. It’s an embarrassment we cannot afford,” Solomons concluded.

The nation now waits anxiously for clarity as the government navigates its most significant budget crisis in decades.

Listen to the full interview with Moulana Junaid Kharsany and BOSA Spokesperson Roger Solomons on The Daily Round-Up.

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