ANC Expects Budget to Remain Unchanged, Except for VAT Proposal

Finance Minister Enoch Godongwana is expected to table budget 3.0 this month, making it a third attempt in as many months.

ANC expects budget to remain unchanged, except for VAT proposal

ANC Secretary-General Fikile Mbalula on 10 March 2025 briefed the media on the ANC NWC’s visit to the Free State. Picture: @MYANC/X

JOHANNESBURG -The African National Congress (ANC) says it has begun deliberations on what it believes should be line items in the revised budget after National Treasury went back to the drawing board on plans to balance the books. 

Finance Minister Enoch Godongwana is expected to table budget 3.0 this month, making it a third attempt in as many months. 

The first two versions of the national budget failed when political parties objected to an increase in the standard value-added tax (VAT) rate. 

The latest attempt to table a viable budget by the National Treasury is likely to see unprecedented participation by political parties, with leaders in and outside the Government of National Unity (GNU) putting forward fiscal proposals. 

ANC Secretary General Fikile Mbalula said besides the VAT proposal, the budget should remain largely unchanged. 

"The budget as it stands right now was addressing issues the ANC wants to be addressed in relation to serving our people."

Mbalula said the party wants a pro-poor budget, adding the proposal of a 0.5% increase in VAT was a stop-gap measure to raise revenue. 

"We don't want to micromanage Treasury, but we don't want surprises again to come with a VAT increase, that we as the ANC get to be blamed for it today," said Mbalula.