BUDGET FUDGE UP
PRESIDENT Cyril Ramaphosa promised 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 Government of National Unity (GNU) parties failing to reach an agreement over the proposed 2 percent VAT increase.
The VAT would go up to 17 percent from 15 percent. Many criticised the move, saying citizens cannot afford such hikes.
After the decision to postpone his speech to 12 March, Godongwana explained that given the funding and fiscal challenges facing the country, Cabinet will need to decide how the country is going to come up with the additional funding required.
Options tabled were increased borrowings, for which there was little scope, further government spending cuts, or increased taxation.
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 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.”\
Ahead of Ramaphosa and Godongwana’s hosting of the current two-day G20 Financial Ministers’ meeting in Cape Town, the United States Treasury Secretary Scott Bessent announced that he would skip the summit.
On Wednesday, The NY Times reported that Bessent will be the second top US official to avoid the G20 gatherings because of SA’s new land policies.
Earlier this month, President Donald Trump’s Secretary of State Marco Rubio said he would skip the G20 talks over the next week, accusing the host government of the “anti-American” agenda.
Rubio wrote on social media platform X: “I will NOT attend the G20 summit in Johannesburg. South Africa is doing very bad things. Expropriating private property.
“Using G20 to promote ‘solidarity, equality, and sustainability.’ In other words: DEI and climate change.
“My job is to advance America’s national interests, not waste taxpayer money or coddle anti-Americanism.”
DEI which stands for diversity, equity and inclusion has been heavily criticised by Trump.