The South African National Treasury has announced a revised timetable and scope for the 2025 Budget Review, prompting a closer look at the implications for the nation’s fiscal landscape. This adjustment, brought about by the  decision to maintain the current Value Added Tax (VAT) rate, presents both challenges and opportunities for stakeholders.

Revised Timetable and Scope

The re-tabling of the 2025 Budget Review is now scheduled for Wednesday, 21st May 2025.. This process  will encompass not only the Fiscal Framework, Appropriation Bill, and Division of Revenue Bill, but also the already tabled Rates and Monetary Amounts and Amendment of Revenue Laws Bill.

VAT Rate Stabilisation

A significant element of this revision is the reversal of the previously proposed 0.5 percentage point increase in the VAT rate. 

Commitment to Due Process and Consultation

The National Treasury emphasised its commitment to adhering to all established technical processes and consultations as mandated by the Money Bills and Related Matters Act. This includes formal engagement with the Financial and Fiscal Commission, thorough discussions with all political parties within the Government of National Unity, and Cabinet approval.

Ensuring Continuity of Services

To ensure the continued functioning of government services, funding will be maintained under section 29 of the Public Finance Management Act until the new budget is passed. This allows for phased spending based on the previous year’s budget. Similarly, funding transfers to provinces and municipalities will continue under the 2024 Division of Revenue Act, permitting transfers of up to 45 per cent of their allocated funds.