The 2025 fiscal framework and revenue proposals were adopted by the National Assembly and the National Council of Provinces on Wednesday after a prolonged budgetary process that saw two previous versions of the budget being rejected because of their proposed increases in the VAT rate.
The adoption came nearly four months after the first budget was tabled in parliament in February.
The fiscal framework, which aims at debt stabilisation, includes the government’s revenue and expenditure plans as well as its debt stabilisation strategy.
Political parties in the government of national unity rallied around the budget, which was adopted in the National Assembly with 268 votes in favour, 88 against and two abstentions by Build One SA MPs.
MK party and the EFF MPs voted against the budget, which they described as an anti-poor, austerity budget, a claim that finance minister Enoch Godongwana strongly disputed in his closing remarks. He said the budget was redistributive, as social grants increased by more than inflation and over 60% of noninterest expenditure was channelled to the social wage.
During the debate several opposition party MPs highlighted the need to increase SA’s poor economic growth rate and implement economic reforms to address its chronic unemployment problem.
Godongwana insisted the budget was pro-growth referring to the R1-trillion allocated over three years to infrastructure investment, stressing that it was the duty of MPs to ensure that this was spent efficiently and effectively.
Opposition parties also rejected the fuel levy increase, which they said would have ripple effects throughout the economy and hit the poor.
The need to eliminate waste in government spending and conduct spending reviews were also emphasised.
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