Cape Town – The Speaker of the National Assembly, Thoko Didiza, has reiterated Parliament’s readiness to process and adopt the revised Budget and Fiscal Framework “swiftly and responsibly” within the legally prescribed timeframe.
Chairing the National Assembly’s Programme Committee on Wednesday, 30 April 2025, Speaker Didiza said every effort will be made to ensure that government operations continue seamlessly and that the principles of accountability and sound financial governance were upheld.
The Speaker said Finance Minister Enoch Godongwana will table the revised Budget and Fiscal Framework in the National Assembly and the sitting would be a physical meeting.
Earlier Wednesday, Finance Minister Godongwana, announced that he will re-table the 2025 Budget Review on 21 May 2025.
The finance minister announced the new date he will table the revised budget, just three days after the Western Cape High Court set aside the fiscal framework adopted by Parliament in early March.
In his third attempt to have the budget passed by Parliament, Minister Godongwana said a comprehensive review would be carried out, which will include the Fiscal Framework, the Appropriation Bill, the Division of Revenue Bill, and already tabled Rates and Monetary Amounts and Amendment of Revenue Laws Bill.
This review follows Minister Godongwana’s recent announcement to maintain the Value-Added Tax rate at its current level of 15 percent, reversing the previously proposed 0.5 percentage point increase presented in the 12 March budget.
“The revised budget will adhere to all established technical processes and consultations as set out in the Money Bills and Related Matters Act,” the Ministry of Finance said.
“This includes formal consultations with the Financial and Fiscal Commission, thorough consultations with all political parties within the government of National Unity, as well as Cabinet approval before presentation to Parliament.
“Until the new budget is passed, government services will continue to be funded under section 29 of the Public Finance Management Act.”
The Ministry of Finance said this allows spending of up to 45 percent of last year’s budget during the first four months, and up to 10 percent for each month after 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 percent of their allocated funds,” explained the Ministry of Finance.
“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.”
However, the Ministry of Finance said his 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.
“The National Treasury has already commenced work on developing a new fiscal framework that will maintain our trajectory toward debt stabilisation, a crucial element in strengthening our public finances,” the Ministry of Finance said.
This process includes:
- Revising economic assumptions using the latest available data
- Generating a updated fiscal projects
- Recalculating revenue projections and tax implications
- Determining appropriate borrowing strategies
- Consolidating these elements into a coherent and sustainable fiscal framework, the Ministry remains committed to transparent communication throughout this process and will provide further updates as they become available.
“We owe it to the hardworking citizens of South Africa to be open and transparent about how tax money is spent,” Minister Godongwana said.
“The budget that will be tabled on 21 May 2025 will aim to maintain these principles.”
