Postponement of the 2025 Budget

Publication Date: 20/02/2025

The postponement of the 2025 Budget Speech is of obvious concern to South Africans and the markets. Policy uncertainty is never a good thing.

However, given the severe social security and economic development challenges facing the country, and South Africa’s limited fiscal resources, it was inevitable that reaching agreement on the first budget of the Government of National Unity would be difficult. Compromise is seldom easy.

BASA is hopeful that the additional time now afforded to Cabinet will enable National Treasury to reach a budget proposal that prioritises spending on economic stimulus and infrastructure in addition to protecting sustainable social security and development programmes. The time should also be used to ensure meaningful consultation and proper management of the necessary governance and legislative processes.

South Africa’s fiscal policies must focus on significantly boosting economic growth, the only way the country can overcome the competing social and economic challenges we face, which resulted in this deadlock.