President Cyril Ramaphosa is doing everything possible to ensure there is “sufficient consensus” between government of national unity (GNU) partners on the contents of finance minister Enoch Godongwana’s 2025 budget to be delivered in parliament at 2pm.
GNU partners met on Tuesday evening and had a crucial cabinet sitting at 8.30am on Wednesday where Godongwana presented the budget to his colleagues, including ministers from the GNU.
The meetings were held so partners could try to reach “sufficient consensus”, particularly around the proposal to include a VAT increase to plug a R60bn hole in the budget.
Business Day understands that the DA, the second largest party in the GNU, remains opposed even to a VAT increase that is less than the two percentage points initially proposed, though other parties, such as the PA, have been won over, going into Wednesday morning’s cabinet meeting.
Ramaphosa’s spokesperson Vincent Magwenya said the president was doing everything possible to try to reach sufficient consensus.
“In the event there’s still no agreement on the budget, there is a process to be followed in parliament, and we are reasonably comfortable that any remaining issues can be resolved to ensure that the budget is passed,” he said on Wednesday.
“A careful balance has been struck and all the necessary compromises have been made on issues related to the budget. It’s a budget that certainly prioritises support and cushioning of poor households.”
Sufficient consensus forms the basis of decision making in the GNU — as agreed to by all parties when they signed the statement of intent, the founding agreement of the 10-party tie-up.
Should partners fail to reach sufficient consensus, the matter would be referred to a clearing house, chaired by deputy president Paul Mashatile.
Business Day reported on Wednesday that minister in the presidency Khumbudzo Ntshavheni expressed confidence that Godongwana would table the national budget on Wednesday, saying any disagreements among cabinet members would be dealt with afterwards.
“The minister of finance will finalise and present the budget. It will be tabled, discussed and, if there is a need, sent back,” Ntshavheni told Business Day on Tuesday
“But there has been [a] sufficient period for input from all political parties and the reality is that long-term proposals will not help fill a projected immediate budget deficit.”
Ntshavheni had said the cabinet subcommittees had worked “through the night” and consultations would continue on the sidelines.
Business Day understands the budget presentation will go ahead as planned on Wednesday, and talks about potential adjustments would continue ahead of the votes on equitable distribution to all spheres of government and allocation of funds to departments in parliament in the coming weeks.
“The reason why it is a money bill is because it is subject to discussions. If there is sufficient consensus on it, so be it, but parties will have an opportunity to debate issues one by one,” a source close to the talks told Business Day on Tuesday.
“There may be agreement on growth reforms and budget reprioritisation ... the hiccup is more to do with the how and who does what.”
Godongwana briefed the ANC top brass on his finalised budget proposal on Monday, and DA leader John Steenhuisen confirmed he had “been conferring continuously” with Ramaphosa on it.
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