South Africa Minister of Finance Enoch Godongwana
South Africa Minister of Finance Enoch Godongwana don present di budget speech 2025 bifor di parliament wia e announce increase in Valued Added Tax (VAT, infrastructure spending among oda economic issues.
On Wednesday 12 March 2025, Minister Godongwana deliver di 2025 Budget Speech for di National Assembly temporary Chamber in di presence of di parliament members wey dey made up of opposition parties as well as President Cyril Ramaphosa.
Godongwana outline all di financial, economic and social commitments wey di govment want for im expenditure as well as govment spending and proposals for revenue collection wey govment wan use fund di economy.
Bifor today speech presentation, dem bin don postpone di presentation last two weeks sake of complain ova di VAT increment.
"I apologise for di postponement. Di postponement of di budget speech last two weeks ago dey regrettable. Wetin dey good be say di delay don bring up debate of which priorities we get to focus on in di face of limited resources."
"Di bigger debate now na how we fit grow South Africa economy. To meet our goals, di economy need to grow faster."
Di minister touch on economic issues wey dey affect South Africans - from taxes to personal income, education, health and security.
Dis na di highlight of di minister budget speech.
VAT increment
According to di budget speech presentation by di finance minister, govment go increase VAT by half-a-percentage point for di first year and anoda increase go happen for di following year.
Di VAT go increase by 0.5% from 1 May 2025 den followed by anoda 0.5% on 1 April 2026.
"To raise di revenue needed, di govment don propose to increase di VAT rate by half- a- percentage point for 2025/2026, and by anoda half-a-percentage point for di following year.
"Dis go bring di VAT rate to 16 per cent for 2026/27."
Wen di finance minister announce dis, noise bin start for di parliament as some members disagree and di minister get to explain imsef more.
Na di speaker later try calm di situation bifor dem allow am to continue to read im speech.
"VAT na tax wey affect everyone and by going for a marginal increase to VAT we don consider dia distributional effect and impact."
"Di increase na also di most effective way to avoid further spending cuts and to enable us extend di social wage.
According to Minister Godongwana, if dem increase corporate or personal income tax rates, e no go generate enough revenue and e go harm investment, job creation wit economic growth.
E say to borrow or additional debts no go dey affordable for di South Africa economy and na VAT wey affect everybody, na im be di effective way to fit fund di spendings of di govment.
Basic Education
Di minister raise concern about how dem dey use about 76 per cent of provincial education budgets to pay salaries.
E say additional funding go dey needed and dem don add am to di budget to be able to pay teachers as well as also fund di school infrastructures.
"Our learner-teacher ratios remain higher dan we go like wey mean say we still need more teachers for classrooms.
"To prevent compensation of employees from crowding out oda equally important areas of spending, R19.1 billion dey added ova di medium term to keep approximately 11 000 teachers for classrooms."
On di matter of early childhood development (ECD), South Africa finance minister complain say di subsidy for ECD neva increase from di 2019 level of R17 per day wey each child dey entitled to.
"Additional R10 billion ova di medium term dey allocated to increase di subsidy to R24 per day per child."
"Di extra funding go also support access to ECD for approximately 700 000 more children, up to di age of four years old.
Health and Social security
According to di finance minister, health spending go increase from R277 billion in 2024/2025 to R329 billion in 2027/2028.
E say dis go support di provision of public health services wey include free primary healthcare.
"R28.9 billion dey added to di health budget, mainly to keep about 9 300 healthcare workers in our hospitals and clinics," di minister tok.
Di minister also announce employment of 800 post-community service doctors and say di additional funding go ensure say pharmacies no run out of medicines.
For social security, Minister Godongwana say di social grants dey targeted at old pipo and child support as e announce say nearly 28 million beneficiaries go fit access di social grants.
E add say dem go extend di COVID19 Social Relief of Distress (SRD) by a year to end March 2026 wit R35.2 billion allocated for dat purpose.
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