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News

Mixed reactions to budget amid tough economic climate

todayMarch 13, 2025 15

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Photo Credit: Internet

Mixed reactions to the budget tabled by Finance Minister Enoch Godongwana continue to dominate the headlines, with many saying it doesn’t reflect a growth plan for the economy.

The Minister was finally able to present the budget on Wednesday, after the first attempt last month was disrupted due to disputes within the Government of National Unity (GNU) over the proposal of a 2% Value Added Tax (VAT) increase.

Non-profit organisation and research hub, Quote This Woman+, says the Finance Minister missed the opportunity to give confidence to South Africans that societal issues such as Gender-Based Violence (GBV) with adequate funding, can finally be dealt with.

The organisation says he also failed to address the the impact that the USAID cutback will have on South Africans.

The US contributed 17%, used to pay healthcare workers, to the country’s HIV/Aids and TB fight. It did this through the President’s Emergency Plan for Aids Relief, US President, Donald Trump, has since withdrawn across the globe.

While Enoch Godongwana allocated an additional R28.9 billion to the national health budget, the organisation’s Wendy Papo, has called for government to prioritise women issues.

 

Social justice organisation, SECTION27, says the Minister’s budget is somehow misleading.

The rights group says while it appears to be generous, it is still taking with the other hand from South Africans.

Section27’S Budget policy analyst and researcher, Matshidiso Lencoasa, says while they welcome the increased investment in health, social protection and education, the proposed VAT increase will impact the poor at a larger scale.

 

Human rights group, Black Sash, says the Child and COVID-19 grants being kept below the Food Poverty Line of R796 is a cause for concern.

The organisation is also bothered by the staggered VAT increase 0.5% planned for this year and another 0.5% for next year.

While welcoming the proposed hike of the old age and disability grants by R130, the child support grant by R30 and the foster care grant by R70 – Black Sash’s Oliver Meth complained that an increase in VAT will bring more strain to already struggling South Africans.

Some Non-Governmental Organisations (NGO) like the Rural Health Advocacy Project believe the bailout for the Health Department will assist in closing the gap left by the US’s withdrawal of funding of HIV/Aids and TB programmes.

The organisation says the allocations would lay a foundation for the broader plan to strengthen public funded health services going forward.

The South African Medical Association (SAMA) also welcomed the health budget allocation, saying it will play a huge role in revitalising the sector.

Despite this, however, SAMA chairperson, Dr Mvuyisi Mzukwa, says more still needs to be done to prevent the health sector from collapse.

Some experts have, nonetheless, critisised Godongwana’s budget, saying this financial plan is far from ideal for South Africa’s struggling economy.

 

One of them is economist, Dawie Roodt, who believes that Godongwana’s budget will not be approved in Parliament next week when lawmakers vote on it.

In the Education sector, the South African Students’ Federation (SAFS) slammed Godongwana’s financial balancing act, saying it has a tone-deaf disregard for the urgent needs in higher education.

The organisation says the Finance Minister’s failure to allocate increased higher education funding is a slap in the face to students and institutions struggling financially.

Godongwana’s 2025/26 national budget focused on basic education and early childhood development.

The organisation’s Keamogetswe Masike says it doesn’t accommodate issues faced by tertiary students.

Political parties are also divided on the financial allocations.

The Democratic Alliance (DA), which is the second biggest party in the GNU, says it will not support next week.

MK Party Deputy President, Dr John Hlophe, says the Finance Minister’s budget is a clear sign that the government is failing to prioritise South Africans.

Expressing concern that young people continue to bear the brunt of the lack of jobs in the country, Hlophe rejected the budget as having missed the mark.

The country’s official opposition party says the GNU must go.

Economic Freedom Fighters (EFF) leader, Julius Malema, says the government has clearly run out of ideas on how to generate revenue.

BOSA leader, Mmusi Maimane, says the Finance Minister should look at cutting more government spending that taking from the mouths of the poor.

Naturally, the African National Congress (ANC) has defended the budget.

The party says the proposed VAT increase was thoroughly thought about, in an effort to sustain government revenue. It says the poor will be cushioned through the expanded zero-free rated foodstuff.

ANC Secretary-General, Fikile Mbalula, slammed the budget’s critics, accusing them of trying to preserve privilege over progress.

Mbalula says the ANC will work hard to transform South Africa into a country that works for all, not just for the wealthy.

 

Minister in the Presidency, Khumbudzo Ntshavheni, says the DA’s objection to the national budget has nothing to do with protecting the interest of the poor, but is aimed at preventing government from achieving its transformation gains.

Ntshavheni says the DA wants to hold the country at ransom.

Written by: Nonhlanhla Harris

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