DA says Budget Speech postponement a 'victory' after its opposition to ANC’s VAT increase

John Perlman is joined by Stephen Grootes, host of The Money Show.

The last-minute postponement of the Finance Minister's Budget Speech on Wednesday has left commentators and ordinary citizens in shock.

National Assembly speaker Thoko Didiza announced the decision at a press conference ahead of Finance Minister Enoch Godongwana's presentation, set to start at 2 pm.

RELATED: Opposition parties bemoan postponement of Godongwana's budget speech

The Budget has been postponed to 12 March, after the chief whips of most parties agreed to this at a meeting before the scheduled speech.

It was leaked to the media that a 2 percentage point hike in VAT was to have been announced.

Godongwana told a media briefing a postponement is needed 'to allow for further deliberations on the Budget'.

'Cabinet is united in the view that the Budget must strike a balance between the interests of the public, economic growth and fiscal sustainability', he said.

The Money Show host Stephen Grootes says a statement issued by the

Democratic Alliance (DA) soon afterwards in which it claimed a victory of sorts with regards to its opposition to the VAT increase, reflects what this all about.

Grootes believes what is going to rattle markets, is that this not just a sign of an area of disagreement in the coalition government.

"It shows that at least one party - the second biggest party - is prepared to take things to the absolute brink; to not actually pass a budget which has all sorts of consequences, and also to do this in this particular way... It's very humiliating and embarrassing to take it to this level."

Stephen Grootes, Host - The Money Show

"Look, it does take two to tango and perhaps people in the ANC - perhaps the Minister or the President, really helped to push it to this level and then couldn't reach an agreement or delay things earlier."

Stephen Grootes, Host - The Money Show

The markets are going to feel that the faith in government we do have, has been shaken in a way that will be very difficult to restore, Grootes warns.

Scroll up to the audio player to listen to the discussion