South Africa budget 2025: Finance Minister Enoch Godongwana faces political headache

The finance minister's decision to push ahead with tax hikes puts him at odds with coalition partners.

British Broadcasting CorporationWatch LiveHomeNewsSportBusinessInnovationCultureArtsTravelEarthAudioVideoLiveHomeNewsIsrael-Gaza WarWar in UkraineUS & CanadaUKUK PoliticsEnglandN. IrelandN. Ireland PoliticsScotlandScotland PoliticsWalesWales PoliticsAfricaAsiaChinaIndiaAustraliaEuropeLatin AmericaMiddle EastIn PicturesBBC InDepthBBC VerifySportBusinessExecutive LoungeTechnology of BusinessFuture of BusinessInnovationTechnologyScience & HealthArtificial IntelligenceAI v the MindCultureFilm & TVMusicArt & DesignStyleBooksEntertainment NewsArtsArts in MotionTravelDestinationsAfricaAntarcticaAsiaAustralia and PacificCaribbean & BermudaCentral AmericaEuropeMiddle EastNorth AmericaSouth AmericaWorld’s TableCulture & ExperiencesAdventuresThe SpeciaListEarthNatural WondersWeather & ScienceClimate SolutionsSustainable BusinessGreen LivingAudioPodcastsRadioAudio FAQsVideoLiveLive NewsLive SportHomeNewsSportBusinessInnovationCultureArtsTravelEarthAudioVideoLiveWeatherNewslettersSouth Africa in 'uncharted waters' as budget splits coalition government6 hours agoShareSaveKhanyisile NgcoboBBC News, JohannesburgShareSaveGetty ImagesSouth Africa has entered uncharted waters following deep divisions in the coalition government over the national budget that has finally been tabled after a month-long delay.

This is the view of analysts after Finance Minister Enoch Godongwana's budget drew a backlash from various quarters, including key partners in the coalition government rejecting his proposals for a second time.

The African National Congress (ANC) formed a government of national unity (GNU) with nine other parties after losing its parliamentary majority in elections last year.

And, without the support of its biggest coalition partner, the Democratic Alliance (DA), it will fail to pass the budget unless it rethinks its contentious policies or gets the backing of the biggest opposition parties.

Godongwana was forced to postpone his budget presentation last month after fierce resistance to his plan to raise value-added-tax (VAT), which would have seen the prices of goods go up at a time when South Africans are hard-hit by the cost-of-living crisis.

https://www.bbc.com/news/articles/cd92z3823qyo

---