Pretoria – Finance Minister Enoch Godongwana has announced that a revised national budget will be tabled on 21 May, following last week's court-ordered reversal of the 2025 Fiscal Framework, which included a proposed 0.5% VAT hike.
Addressing the media on Wednesday, Godongwana confirmed a communication “closed period” leading up to the new budget. “We are here to take any further questions you may have on this particular matter. The Director-General has instructed me to tell you that between now and the 21st, I will not talk to you. It’s a closed period,” he said.
The Minister outlined Treasury's updated fiscal priorities, which include boosting revenue collection, stimulating economic growth, and tightening government expenditure.
“We must balance the budget by managing our costs better. Other taxes besides VAT were not an option — it would harm growth, savings, and jobs,” said Godongwana. “Borrowing more would deepen our debt crisis. We already spend over a billion rand daily just to service debt.”
He emphasised the need to eliminate wasteful expenditure, adding: “Every cent of public money must be spent wisely.”
In the interim, government departments may spend up to 45% of their previous year’s budget during the first four months of the financial year, and no more than 10% per month thereafter until a new budget is passed.