South Africa: Cabinet Concludes Discussions on Funding for 2025 Budget

The Minister of Finance, Enoch Godongwana, and National Treasury will finalize the budget for the 2025/26 financial year to present to Parliament on March 12, 2025. The Cabinet has held consultations to explore funding options amid fiscal constraints. A team led by Deputy President Paul Mashatile has facilitated discussions to ensure that the budget aligns with the government’s priorities and addresses socio-economic impacts.

The Minister of Finance, Enoch Godongwana, along with the National Treasury, is poised to finalize and present the budget for the 2025/26 financial year to Parliament on Wednesday, March 12, 2025. A Cabinet statement released by the Government Communication and Information System (GCIS) confirmed this timeline following a special Cabinet meeting convened to discuss potential funding options for the upcoming budget.

This meeting on March 24, 2025, permitted extensive discussions regarding the nation’s fiscal limitations and the urgent execution of three key priorities outlined by the seventh administration within the Government of National Unity. President Cyril Ramaphosa established a ministerial team led by Deputy President Paul Mashatile, tasked with collaborating with the Minister of Finance and the National Treasury to refine the Cabinet’s suggestions for further deliberation.

The Deputy President’s team, with support from the National Treasury, presented various funding options that were subsequently discussed by the Cabinet. Consistent with Section 27 of the Public Finance Management Act (1 of 1999), the Cabinet empowered the Minister of Finance to select the most viable funding approach for the budget, mindful of the country’s fiscal constraints while considering the socio-economic impacts on poor and middle-income households and fostering economic growth.

With the Cabinet’s input process regarding the budget concluded, the Minister of Finance, alongside the National Treasury, is now prepared to finalize the budget and formally present it to Parliament on March 12, 2025. It is notable that this follows the previous postponement of the budget presentation by Minister Godongwana, necessitated by further discussions on funding challenges.

The forthcoming budget will delineate the government’s financial, economic, and social commitments that will receive priority in the planned expenditures for the 2025 budget speech.

The Cabinet has concluded its engagement process for the upcoming 2025/26 budget, marking a significant step toward addressing the country’s fiscal challenges. The Minister of Finance is expected to present a budget that aligns with the government’s objectives while being responsive to the needs of vulnerable populations. The scheduled presentation to Parliament on March 12, 2025, aims to emphasize strategic funding that supports economic growth and alleviates the burden on lower-income households.

Original Source: allafrica.com