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2mo ago

South Africa Delays Budget Speech Over Coalition Dispute

The unprecedented postponement follows disagreements within the 10-party coalition over a proposed VAT increase.

South African President Cyril Ramaphosa gestures for the national anthem from the steps of Cape Town's city hall before delivering his annual state of the union address, Thursday, Feb. 6, 2025. (AP Photo/Nardus Engelbrecht)
Finance minister Enoch Godongwana was due to present the budget in Cape Town
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Overview

  • South Africa's budget speech, originally scheduled for February, has been postponed to March 12 due to a lack of consensus within the coalition government.
  • The Democratic Alliance (DA), a key coalition partner, opposed a proposed 2% VAT increase, arguing it would harm the struggling economy.
  • This marks the first time since the end of apartheid that a budget has been delayed due to political disagreements, reflecting tensions in the ANC-led coalition.
  • The government is grappling with how to address fiscal challenges, including funding priorities after losing U.S. aid and dealing with high poverty and inequality rates.
  • Critics, including the far-left Economic Freedom Fighters, have questioned the coalition's stability and ability to govern effectively.