2025 South Africa Budget Passes by Narrow Margin – GNU Splits Over VAT Hike

National Assembly Passes 2025 Budget, But the Vote Was Close

The National Assembly has narrowly approved South Africa’s 2025 Fiscal Framework and Revenue Proposals following a heated parliamentary debate on Wednesday afternoon. The crucial vote saw 194 members in favor against 182 opposed, with no abstentions recorded.

Budget Approval Process

Presiding Officer Cedric Frolick confirmed the adoption, stating: “The question that the 2025 Fiscal Framework and Revenue Proposals and the report of the Standing Committee is thus adopted.”

Chairperson of the Standing Committee on Finance, Mkhacani Maswanganyi, detailed the extensive consultation process:

  • Finance Minister Enoch Godongwana and SARS commissioner briefed the committee on March 14
  • Received post-budget input from Parliamentary budget office on March 18
  • Conducted public hearings on March 25 with 51 submissions (29 written, 22 oral)
  • National Treasury responded to public concerns on March 28

Key Budget Provisions

The approved framework includes significant measures:

  • 1% VAT increase implemented over two years
  • No adjustments to income tax brackets

Voting Breakdown

Parties Supporting the Budget (*GNU partners)

  • African National Congress (ANC)*
  • Inkatha Freedom Party (IFP)*
  • Patriotic Alliance (PA)*
  • United Democratic Movement (UDM)*
  • Action SA
  • Build One South Africa (BOSA)

Parties Opposing the Budget (*GNU partners)

  • Democratic Alliance (DA)*
  • Freedom Front Plus (FF+)*
  • uMkhonto we Sizwe (MKP)
  • Economic Freedom Fighters (EFF)

Political Implications

The vote revealed fractures in the Government of National Unity (GNU), with the ANC securing support from outside the coalition to pass the budget. Notable developments:

  • DA and FF+ broke GNU ranks to oppose the budget
  • ANC successfully courted ActionSA and BOSA for additional support
  • National Coloured Congress (NCC) absent but indicated opposition

Public Engagement

Readers are invited to share their views on whether this signals the beginning of the end for the GNU. Follow The South African for ongoing political coverage across multiple platforms.

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