Godongwana seeks more consultation in the budget process

CAPE TOWN - Finance Minister Enoch Godongwana wants more consultation in the budget process and says a new approach will be implemented for future budgets.

He says they’ve learned a few lessons during the budget impasse over the value-added tax (VAT) increase, and has called for a new process that will take into account coalitions and the Government of National Unity (GNU).

On Wednesday, Godongwana addressed the media, where he announced 21 May as the new budget day, where he would table a revised fiscal framework without a VAT adjustment.

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Godongwana reflected on the budget process involving several GNU partners, saying it’s been “messy” with parties falling out publicly.

He says once he tables the new fiscal framework and budget, they will have to work on a new approach before the medium-term budget policy statement (MTBPS) in October.

"Finally, we intend we intend develop a new process which takes into account the current environment and that process on what consultation we need to take, and that consultation in our mind has got to start in September before the medium-term budget policy statement."

Godongwana says this will be essential because the MTBPS is a key milestone that shapes the content of the February budget.

Until the new budget is passed, he said, government services will continue to be funded under section 29 of the Public Finance Management Act.