Budget postponement stuns South Africans

By Simon Nare

The decision by Cabinet to postpone the Budget Speech on Wednesday was necessary because the Government of National Unity needed to work out how it would fund priorities in the country, according to Finance Minister Enoch Godongwana.

He confirmed to reporters, who found out at the last minute that the Budget would not be delivered, that it was derailed due to a disagreement over increasing value-added tax by two percentage points and what the implications were on the government fiscus and normal South Africans.

The news sent shockwaves throughout the country and the markets. This is the first time since the dawn of democracy that the tabling of the Budget has been postponed.

It is also the first budget of the Government of National Unity.  

As the news spread, President Cyril Ramaphosa moved swiftly to assure South Africans that while the postponement was the result of