The speech, meant to be delivered by the Minister of Finance Enoch Godongwana on Wednesday, was set to outline the government’s financial plans, focusing on balancing economic growth while supporting vulnerable communities.
While the reasons behind this decision remain unclear, speculation suggests that there has been a disagreement between the Government of National Unity (GNU) parties on policy. It is alleged that the 2025 budget would have seen VAT rise by two percentage points to 17%.
The Treasury has yet to issue an official statement on how this cancellation will impact fiscal planning and government commitments for the year ahead.
Stakeholders, including businesses, investors, and social welfare groups, are now uncertain about the country's financial direction.
While several party Chief Whips accepted the postponement, concerns were noted. The budget is now expected to be delivered on 12 March.
Minister Reveals Why Budget Was Postponed
The postponement of the Budget Speech was necessary to allow for further deliberations by Cabinet according to Minister Godongwana.
The Minister explained that the government budget must balance public interests, economic growth, and fiscal sustainability.
A budget must be presented before the start of the next financial year, though exceptions can be made in extraordinary circumstances. This was a short explanation from the Minister.
Finance Minister Enoch Godongwana said consultations will now take place to ensure that a new or amended budget can be presented by 12 March 2025.
