Cape Town: Cabinet has affirmed its support for the 2025 National Budget tabled by the Minister of Finance on Wednesday, 21 May 2025, detailing key spending priorities over the next three years within the country’s fiscal envelope.
According to South African Government News Agency, Minister in The Presidency Khumbudzo Ntshavheni spoke during a post-cabinet briefing on Thursday, emphasizing the National Budget’s demonstration of the government’s commitment to fiscal discipline. The Minister highlighted that the budget aims to steer the economy while addressing the needs of the most vulnerable in society, with a significant investment of R1 trillion towards infrastructure over the coming three years.
The Minister noted that the budget is designed to be pro-poor, with 61 cents of every Rand in consolidated, non-interest expenditure allocated to free basic services such as electricity, water, education, healthcare, affordable housing, and social grants for those in need. This was stated during a briefing in Cape Town.
Finance Minister Enoch Godongwana returned to Parliament last week to re-table the 2025 Budget Review. This decision comes after the Minister’s recent announcement and subsequent request to the Speaker of the National Assembly to maintain the Value-Added Tax rate at its current level of 15 percent, reversing a previously proposed 0.5 percentage point increase presented in the 12 March budget.
The National Treasury has indicated that the revised budget will comply with all established technical processes and consultations as outlined in the Money Bills and Related Matters Act. This includes formal consultations with the Financial and Fiscal Commission, thorough consultations with all political parties within the Government of National Unity, as well as Cabinet approval before presentation to Parliament.