African National Congress (ANC) secretary-general Fikile Mbalula said the country exceeded its borrowing capacity, and his party understood that the 2025 Budget Speech had to be postponed to fix some of the challenges the Government of National Unity (GNU) partners raised.
Finance Minister Enoch Godongwana was set to deliver his address to Parliament on Wednesday; however, the session was postponed until next month after Parliament said the Executive requested the postponement.
“There's a whole lot of other challenges that are facing us. We have invested a lot in our discussion and believe our finance minister did well,” said Mbalula.
When asked whether the suspension of US funding would affect the government, he said South Africa doesn't depend entirely on US funding. Still, he acknowledged that NGOs would be negatively impacted.
At a media briefing held shortly after the postponement of the Budget Speech, Godongwana denied that the unprecedented delay was due to disagreements between the GNU partners.
Minister in the Presidency Khumbudzo Ntshavheni also said that the postponement was a cabinet decision, dismissing suggestions that this reflected the challenges in the GNU.
Meanwhile, Speaker of Parliament Thoko Didiza conceded that funds may have been wasted as the 2025 Budget Speech was unceremoniously postponed, a precedent opposed by many opposition parties.
Didiza said that Parliament was forced to postpone the speech as the executive informed them that the GNU members disagreed with the speech that Godongwana was set to deliver.
“We must acknowledge that this is unprecedented, but as a Parliament, we realised that there would be no speech presented as the GNU Chief Whips asked for a postponement,” Didiza said.
The parties in the GNU, including the Democratic Alliance, supported the postponement, while opposition parties, such as the ATM, UDM, EFF, and MK Party, rejected the move.
They called for the minister to account for the delay.
ATM leader Vuyo Zungula had called for the finance minister to present his Budget Speech. He said reassuring markets is problematic, as the House belongs to the people.
Bosa leader Mmusi Maimane said the GNU had six months to prepare for the Budget Speech, but it failed to do so.
“We all know the reason they're postponing; it is due to the 2% VAT increase,” he said.