Finance Minister Enoch Godongwana is set to chart the way forward for the national budget after a significant legal setback in the Western Cape High Court.
The court recently ruled to set aside Parliament’s adoption of the 2025 Fiscal Framework, which includes the controversial proposed 0.5-percentage point increase in Value Added Tax (VAT). The ruling has prompted a reset in the national budgeting process.
As a result, Godongwana is now required to table a third version of the budget, marking an unprecedented development in South Africa’s fiscal planning.
The Finance Ministry is expected to announce how it plans to proceed amid growing economic pressure and political scrutiny over the proposed tax hikes and expenditure plans.