Finance Minister Enoch Godongwana is set to appear before Parliament today to defend his controversial 2025 Budget Speech, engaging with members of the standing committee on appropriations and the finance committees of both the National Assembly and the National Council of Provinces (NCOP).
The minister is expected to face strong opposition, particularly regarding the 0.5% VAT increase, which has sparked criticism from both the Democratic Alliance (DA) and other Government of National Unity (GNU) partners.
The ANC, now governing in coalition, no longer has the outright majority to pass the budget without securing additional support.
What to expect from today’s committee meetings
Godongwana will be questioned about his budget allocations and spending priorities, particularly regarding inflation control, social grants, and economic development. Among the key issues expected to be raised:
- The VAT hike: The DA has made it clear they will not support any budget that includes a tax increase, arguing that middle- and low-income South Africans cannot absorb more financial strain.
- Social grants and expenditure: MPs will likely challenge Godongwana on how the government plans to sustain and expand the Social Relief of Distress (SRD) grant, which has been extended until March 2026.
- Public sector spending and corruption: There will be scrutiny on wasteful and irregular spending, with opposition parties demanding clearer commitments to cutting unnecessary expenses and addressing inefficiencies in state departments.
- State-owned enterprises (SOEs) and Eskom relief: Godongwana previously announced a reduced Eskom bailout package, down from R70 billion to R40 billion, with another R10 billion in 2026. MPs are expected to challenge whether Eskom’s finances are stable enough to sustain this shift.
What happens after today’s budget hearings?
The budget process moves from public speeches to a detailed parliamentary review, where committees scrutinise and debate financial allocations over the next few months.
The Standing Committee on Finance and the Standing Committee on Appropriations—along with their NCOP counterparts—will hold hearings with:
- The Minister of Finance and Treasury officials
- The Parliamentary Budget Office (PBO)
- Economists and civil society organisations
- Relevant departments and statutory bodies
These reviews will inform the final parliamentary vote on the budget, but they also have real power to amend it.
Unlike before 2009, when Parliament could only approve or reject the budget, the Money Bills Amendment Procedure and Related Matters Amendment Act allows MPs to make changes to budget allocations and force alterations to government spending priorities.
Godongwana has already taken a strong stance against the DA’s outright rejection of the budget, stating during a News24 business breakfast on Thursday:
“First and foremost, they’ve compromised Treasury by saying this is an ANC budget. An independent institution such as Treasury, you make it an ANC channel.”
The ANC’s next move will be closely watched—without DA support, the ruling party may have to negotiate with other opposition parties, including the EFF or MK Party, to get the budget passed.
The coming weeks will determine whether Parliament amends or approves the budget as it stands, but today’s session is expected to set the tone for a tough political battle over South Africa’s finances.
