CAPE TOWN: Deputy President Paul Mashatile has emphasised the importance of collaborative action and transparency in shaping South Africa’s fiscal future. ‘We have learnt that the current budgetary process is not transparent and inclusive enough, making it difficult for citizens to understand how government goes about the process of taking some of the most critical decisions in allocation of resources, albeit limited resources because of the competing needs,’ Mashatile said.
According to South African Government News Agency, the Deputy President spoke during a virtual address at the 2025 Budget Roundtable, held at the Financial and Fiscal Commission (FFC) offices in Cape Town. He emphasised the need to revisit the concept of a ‘people’s budget’ advocated by anti-apartheid activists, the late Ben Turok and Joanamarrie Fubbs. ‘What this means is that we need fiscal planning that is inclusive from the start, in terms of the Medium-Term Expenditure Framework and in line with government’s priorities,’ Mashatile explained. ‘In this case, the budget process as part of fiscal planning must focus on how we address the issues of poverty, unemployment, and inequality specifically.’
The country’s second-in-command highlighted the necessity for the budget to reflect fairness and equity, ensuring that vulnerable sectors are not overlooked in the planning process. The Deputy President also stressed the critical role of the National Budget as the government’s primary tool for translating policy into action. He noted the historic context of this year’s budget process, highlighting the unprecedented postponement of the Budget Speech, and the subsequent adoption of the 2025 Fiscal Framework and Revenue Proposals by the National Assembly this month.
The Deputy President told the attendees about the Cabinet Committee’s formation, which he chairs, tasked with addressing the contentious proposal from the Minister of Finance regarding a VAT increase. He acknowledged that, in contrast to other governments around the world that have collapsed due to fiscal disputes, South Africa successfully navigated the challenges and believes this underscores South Africa’s strong democracy that is functioning effectively. ‘Government remains committed to expanding economic growth while improving the quality of life for all citizens.’
Mashatile said equitable resource allocation was particularly timely as South Africa grapples with economic disparities. ‘Public allocations should be fair, just, and available to all citizens,’ he said, reinforcing the government’s commitment to serving all members of society. As the budgeting process continues with the looming deadlines for the Division of Revenue Bill and the Appropriation Bill in May and June, Mashatile reiterated the importance of thoughtful engagement and transparent decision-making.
He acknowledged the challenges of balancing competing needs, but maintained that, through diligence and collaborative effort, government can chart a path toward a more equitable socio-economic landscape. The Deputy President described the 2025 Budget Roundtable as a pivotal moment for shaping a more equitable future. He also touched on another important task that requires fiscal planning and implementing financial strategies to achieve specific economic goals, which is often related to debt management, government spending, and tax policies.
This includes considering factors, such as interest rates, economic growth, and structural reforms to ensure a stable and transparent macroeconomic environment. ‘The goal here is to create a sustainable fiscal position that supports economic growth and manages risks effectively.’