South Africa’s 2025 budget

Finance Minister Enoch Godongwana delivered the 2025 National Budget Speech on Wednesday (12 March). The budget addressed several key points, including the country’s current economic status, growth projections, substantial debt servicing costs, proposed increases in VAT and sin taxes, and the continuation of the social relief grant. A major sticking point for many over the past weeks leading up to the budget was the increase in VAT, which has still been pushed through, albeit at a revised 1%pts over the next two financial years. However, to balance the reduction in the VAT hike, Godongwana noted that personal income tax brackets and medical aid tax credits would not be adjusted for inflation. Phemelo speaks to different parties for reaction EFF MP Chumani Matiwe, DA Spokesperson Willie Aucamp, ActionSA MP Alan Beesley, SAFTU General Secretary Zwelinzima Vavi & MK Party Chief Whip Mzwanele Manyi.