South Africa's budget presentation on track for March 12 amidst ongoing fiscal challenges

Minister in the Presidency Khumbudzo Ntshavheni has confirmed that the 12th of March was cast in stone for the presentation of the deferred 2025 National Budget.

This comes amidst a whirlwind of discussions within Cabinet aimed at ironing out important fiscal details that will be submitted during a special Cabinet meeting next Monday.

During a media briefing post the Cabinet meeting held on Wednesday, Ntshavheni addressed the previous postponement of the budget and elaborated on various pressing issues that had sparked debate, notably the strained US-South Africa relations under former President Donald Trump.

The Minister also underscored that while input from Cabinet members was essential, no specific budget details or party divergences regarding the anticipated increase in Value Added Tax (VAT) by 2 percentage points would be disclosed at this stage.

"Nobody is bringing a party jacket, there is a mechanism that we are putting in place so that you don't have rumours. We are meeting again in a special Cabinet meeting next week Monday because it is part of that process where we analyse our part and our input as Cabinet to then allow the Minister of Finance to do his part," Ntshavheni said, casting aside reports of partyline disagreements on the budget.

"There are no rumours or agreement whatsoever. It's part of the processesses because even when we discuss somebody has to go and crunch the numbers and come back and say what this looks like or what we need to do. We will meet on Monday to finalise our input with the [National] Treasury so that the Minister of Finance and the Treasury team have space to do what they have to do."

She said "market sensitive information" will remain private as Cabinet was engaging, adding that there was a timeline that government needed to comply with to conclude the budget processes.

University of Cape Town chief financial officer, Vincent Motholo, said the unprecedented postponement of the budget’s tabling underscored the critical reality that the bedrock of effective governance lied in securing consistent and reliable revenue streams.

Motholo said that the persistent deficit, a recurring feature of the national budgets, indicated a trajectory that was unsustainable and highlighted the need for decisive and strategic action.

He said finance minister Enoch Godongwana was again expected to paint a picture of a fiscal landscape under pressure when he delivers the budget speech on 12 March.

In another development, Ntshavheni said she was confident that a deal on cooperation between the South Africa and the US was in the making despite what appeared to be a standoff.

"We cannot avoid each other, there will be a meaningful deal that is found. When such a deal has been agreed to we will announce that deal. As the President has indicated, we continue to engage with various processes," she said.

"South Africa is an important global player, we both have mutual interest in the development and growth of our own countries and economies, so it's beneficial for the US to have good relations with South Africa and also beneficial for South Africa to have good relations with the United States."

Ntshaveni said Cabinet did not believe there was a need to rush the processes underway, the fact that there are no delegations announced to take up space in the envoys did not mean there was no work being done in the background as there was engagement through representation by embassies and other channels.

According to a United Nations Comprehensive update, the US funding freeze on HIV/AIDS programmes in South Africa made on Tuesday will affect at least 15 374 PEPFAR-funded HIV response staff across national and 27 priority districts, with an estimated HR cost of R4.6 billion and approximately 222 000 people living with HIV, including 7 445 children under the age of 15, as they face disruptions in their daily antiretroviral therapy supplies.

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