National Treasury has assured South Africans that a revised budget will “adhere to all established technical processes and consultations, as set out in the Money Bills and Related Matters Act”.
This after Finance Minister Enoch Godongwana announced that the 2025 Budget Review will be re-tabled in Parliament on 21 May.
“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.
“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.
“This 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,” National Treasury said on Wednesday.
In the interim before the budget is passed in Parliament, government services “continue to be funded under section 29 of the Public Finance Management Act”.
“This allows spending of up to 45% of last year’s budget during the first four months, and up to 10% 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% of their allocated funds,” Treasury said.
New path
Work is already underway to develop a new fiscal framework that Treasury emphasises will "maintain the trajectory toward debt stabilisation, a crucial element in strengthening our public finances”.
The process for a new fiscal framework includes:
- Revising economic assumptions using the latest available data.
- Generating 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 Africans to be open and transparent about how tax money is spent.
“The budget that will be tabled on 21 May will aim to maintain these principles,” Treasury said. – SAnews.gov.za
