National Treasury to Retable 2025 Budget Amid Calls for Deeper Fiscal Engagement

Finance Minister Enoch Godongwana made the announcement this week, noting that the revised budget process will strictly follow the procedures outlined in the Money Bills and Related Matters Act.

South Africa’s National Treasury has pledged to uphold all established legislative and consultative processes in the lead-up to the re-tabling of the 2025 Budget Review, now scheduled for 21 May 2025. This assurance comes amid a postponement of the original budget presentation, an unusual but necessary step that Treasury believes has fostered more inclusive and meaningful discourse on national fiscal priorities.

Finance Minister Enoch Godongwana made the announcement this week, noting that the revised budget process will strictly follow the procedures outlined in the Money Bills and Related Matters Act. These include engagements with key oversight and advisory bodies, particularly the Financial and Fiscal Commission, as well as thorough consultations with all political parties within the Government of National Unity (GNU), culminating in Cabinet approval.

“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,” Treasury noted in a formal statement on Wednesday.

Bridging the Interim: Temporary Funding Under Existing Legislation

Despite the delay in budget approval, Treasury assured the public that essential government services remain operational. In accordance with Section 29 of the Public Finance Management Act, the government is permitted to spend up to 45% of the previous year’s budget during the first four months of the financial year. After that, monthly expenditures are capped at 10% of the prior year’s budget.

Additionally, until the 2025 Division of Revenue Act is passed, funding transfers to provinces and municipalities will continue under the 2024 Act. This ensures continuity of service delivery, allowing disbursement of up to 45% of the allocated amounts from the prior year.

“This mechanism prevents any service disruption and reinforces the state’s ability to continue operating effectively, even in the absence of a newly approved budget,” Treasury explained.

Toward a New Fiscal Framework: A Path to Debt Stabilisation

Parallel to the re-tabling process, the National Treasury has initiated the development of a new fiscal framework aimed at enhancing economic resilience and public sector sustainability. Central to this framework is the goal of maintaining South Africa’s trajectory toward debt stabilisation, a critical component of macroeconomic confidence.

The process involves multiple components:

• Updated Economic Assumptions: Revising growth, inflation, and employment projections using the most recent data.

• Fiscal Projections: Adjusting expenditure and deficit estimates to reflect the prevailing economic environment.

• Revenue and Tax Estimates: Re-evaluating expected revenue streams and potential tax reforms.

• Borrowing Strategy: Identifying optimal debt management and financing mechanisms.

• Consolidated Fiscal Blueprint: Integrating these analyses into a sustainable, actionable fiscal plan.

“We owe it to the hardworking citizens of South Africa to be open and transparent about how tax money is spent,” Treasury said. “The budget that will be tabled on 21 May will aim to maintain these principles.”

Public and Political Stakeholder Involvement Welcomed

This delay has also provided a rare opportunity for extensive dialogue among key stakeholders. National Treasury underscored the importance of input from citizens, Members of Parliament, trade unions, and civil society organisations. Such engagement, it said, is crucial to crafting a balanced and inclusive budget that supports both fiscal discipline and social development objectives.

With limited resources and growing economic pressures, the upcoming budget is expected to address the complex challenge of stimulating economic growth while protecting essential public services and maintaining a sustainable fiscal outlook.

“We remain committed to transparent communication throughout this process and will provide further updates as they become available,” Treasury assured.

As South Africa waits for the re-tabled budget, eyes will be on how the government balances its fiscal obligations with social imperatives in an environment of global uncertainty and domestic economic strain. The 21 May presentation is now more than just a procedural event—it is a critical milestone in the country’s economic journey.