2025 Budget Review: Key Updates
The Minister of Finance, Mr. Enoch Godongwana, has announced that the 2025 Budget Review will be re-tabled on Wednesday, 21 May 2025. This revised budget will include the Fiscal Framework, Appropriation Bill, Division of Revenue Bill, and amendments to revenue laws. The decision follows the reversal of a proposed 0.5% increase in the Value-Added Tax (VAT) rate, which will remain at 15%.
Until the new budget is passed, government services will continue to be funded under section 29 of the Public Finance Management Act. This allows spending of up to 45% of the previous year’s budget during the first four months, ensuring continuity in public services. Funding for provinces and municipalities will also continue under the 2024 Division of Revenue Act, allowing transfers of up to 45% of their allocated funds.
The National Treasury is actively working on a new fiscal framework to stabilize debt and strengthen public finances. This process includes revising economic assumptions, recalculating revenue projections, and determining borrowing strategies. The revised budget will aim to balance fiscal sustainability with economic growth while protecting essential public services.
The postponement of the budget provides an opportunity for meaningful engagement on fiscal matters. Stakeholders, including citizens, Members of Parliament, labor organizations, and civil society, are encouraged to participate in discussions about achieving fiscal sustainability within limited resources.
The Ministry of Finance remains committed to transparent communication throughout this process. The budget to be tabled on May 21 will reflect these principles, ensuring accountability in how tax money is spent.
We will keep you informed in this regard.
