South Africa finance minister sets date to present third Budget

By S’thembile Cele

South African Finance Minister Enoch Godongwana will return to parliament on May 21 to present his third attempt this year at getting a budget passed.

Godongwana is revising his spending plans after a dispute within the governing coalition over a proposed tax increase forced him to backtrack.

That left the National Treasury with a R75 billion shortfall to plug over the next three years.

“While the postponement of the budget’s passage is not ideal, the circumstances leading to this decision have highlighted the importance of meaningful engagement on fiscal matters,” said Godongwana.

The impasse over Godongwana’s previous two budget was triggered by objections from the Democratic Alliance — the second-biggest group in the coalition — to a planned increase in the value-added tax rate.

That raised investor fears that the business-friendly party might leave the alliance, providing an entry point for leftist groups like the Economic Freedom Fighters