Godongwana: Not approving entire budget by end of August could ‘close govt’
Babalo Ndenze
22 May 2025 | 4:08Godongwana briefed the media in Parliament on Wednesday, shortly before tabling a revised budget without a value-added tax (VAT) increase, after two failed attempts to adopt it.
CAPE TOWN - Minister of Finance Enoch Godongwana said not approving the entire budget by the end of August could cause problems for the government’s ability to spend and perform certain functions.
Godongwana briefed the media in Parliament on Wednesday, shortly before tabling a revised budget without a value-added tax (VAT) increase, after two failed attempts to adopt it.
ALSO READ:
- DA says Godongwana has delivered a budget likely to receive its backing
- Budget 2025: Structural reforms crucial for economic growth, says Godongwana
- Budget 3.0: Keeping VAT at 15% limits funding for new initiatives, says Godongwana
Godongwana said parties in a coalition government are expected to disagree sometimes on issues like the budget.
He said the Government of National Unity (GNU)’s first budget has also taught them lessons on how complex the process to amend a budget is and should be.
“It has got to be cumbersome because the manner in which it was tailored, it was tailored in such a manner that it should not be easy to just sit down and say we’re amending the budget. It’s got to be difficult because people have to comply with what Treasury has to comply with.”
He also emphasised the need to process the budget and the money bills in a reasonable time, or departments won’t be able to spend most of their budgets due to legal regulations.
“If we don’t finish the budget by the end of August, we are going to experience what the Americans experience, which is closing government.”
But director general Duncan Pieterse said the Appropriation Act and Public Finance Management Act allow limited government spending without an adopted budget, but it can’t include new expenditure.
Get the whole picture 💡
Take a look at the topic timeline for all related articles.
Trending News
More in Politics
22 August 2025 17:20
Mayor Hill-Lewis believes CoCT's fixed charges are ideal for service delivery needs
22 August 2025 14:56
Parly’s budget office not forthcoming on guiding parties to amend national budget: Godongwana
22 August 2025 11:41
MPs split on use of classified info before committee probing allegations of police graft