Ramaphosa admits budget postponement was over disagreements but promises a new one that works for all

President Cyril Ramaphosa has assured South Africans that a reworked budget - expected to be delivered next month - would protect vulnerable citizens and work for all.

Finance Minister Enoch Godongwana was supposed to table the budget on Wednesday but it was postponed due to parties failing to reach an agreement over the proposed 2% VAT increase.

The VAT would go up to 17% from 15%. Many criticised the move, saying citizens cannot afford such hikes. 

Ramaphosa said the postponement of the tabling of the Budget in Parliament was the result of disagreement but also collegial and mature consensus within Cabinet that Budget proposals be worked through comprehensively and productively to secure the well-being of the economy and individual citizens.

In his statement, Ramaphosa said: “We are called upon as the national leadership to pursue all initiatives aimed at growth for us to increase employment and alleviate the effects of poverty.

“The Government of National Unity (GNU) will in the coming days and weeks intensify our efforts to balance the imperatives that drive the fundamental growth objectives of this administration with the realities of a constrained fiscal environment.

“We are working as partners to ensure that the Budget works for individuals and investors alike.”  

Although the presidency minister Khumbhudzo Ntshavheni denied that the postponement was over party politics, Ramaphosa admitted that it was about disagreements.

The ANC and the Democratic Alliance (ANC) were at loggerheads over the budget. The ANC wanted to go ahead with the budget but the DA opposed the plan.

Ramaphosa called an emergency Cabinet meeting on Wednesday after the DA threatened to reject the budget if the proposal was approved.

The DA argued that the increased VAT would cripple the poor South Africans and lead them to poverty.

Parties in the GNU also supported the postponement while opposition parties rejected it.

kamogelo.moichela@iol.co.za

IOL Politics