President Cyril Ramaphosa has stated that political parties are currently negotiating to agree on the national budget before it is introduced in Parliament next month.
Image: Itumeleng English/Independent Newspapers
President Cyril Ramaphosa has stated that political parties are currently negotiating to agree on the national budget before it is introduced in Parliament next month.
The Budget Speech will be tabled on March 12.
He underlined that more discussions are being held within the Government of National Unity (GNU) to guarantee that a final budget is reached that serves the interests of all stakeholders.
This comes after several groups opposed the proposed 2% hike in Value Added Tax (VAT), including some African National Congress (ANC) ministers.
Ramaphosa made the statements on Tuesday at the National House of Traditional and Khoi-San Leaders' formal opening in Parliament.
"The budget will be presented on March 12, the minister will mount this podium and present the budget to the nation because by then we will have reached full consensus," he said.
The proposed VAT increase from 15% to 17% has been criticised, with many citizens saying they cannot afford such hikes.
Ramaphosa spoke to traditional leaders about the current budgetary disputes in the GNU, pointing out that the budget presentation had just been postponed.
He highlighted that rather than being an arbitrary decision, Finance Minister Enoch Godongwana's proposal to raise taxes was the outcome of long and in-depth consultations.
Despite the difficulties, Ramaphosa was upbeat and reaffirmed his belief that a balanced budget that received widespread support from all political parties would eventually be approved.
In his weekly newsletter on Monday, he said disagreements, contradictions and policy divergence were inherent in governments made up of several political parties.
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"The last-minute postponement was unfortunate. It gave rise to concern and uncertainty among South Africans, investors and the financial markets, who look to the Budget for important signals about the state and direction of our economy.
"It is therefore essential that the concerns raised by different parties around the budget are properly addressed, in the interests of accountability, transparency and consensus-building.
"This is the first time that the budget is being presented by the GNU. Understandably, this new arrangement would require a different approach in some respects.
"The process of forging agreement among the political parties in the GNU is still a work in progress, but we are certainly getting there."
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