South Africa has indefinitely postponed its highly anticipated national budget speech, citing internal divisions within the coalition government over proposed tax increases.
“We have decided to adjourn proceedings for a date to be determined,” announced National Assembly Speaker Thoko Didiza during a heated parliamentary session on Wednesday.
The budget, which was set to outline fiscal priorities and revenue-raising strategies, was to be delivered by Finance Minister Enoch Godongwana. However, disagreements within the executive coalition prevented any consensus on the proposals.
This marks the first budget under the coalition government formed after the African National Congress (ANC) lost its parliamentary majority in 2024 elections. The ANC, which has ruled South Africa since the end of apartheid in 1994, entered a fragile partnership with nine other parties, including its historical rival, the Democratic Alliance (DA).
DA leader John Steenhuisen celebrated the postponement, calling it “a victory for the people of South Africa.” The DA opposed a proposal to increase value-added tax (VAT) from 15% to 17%, which Steenhuisen argued “would have broken the back of our economy.”
In stark contrast, the Economic Freedom Fighters (EFF), a radical-left party, criticized the delay. “There is no government, it has collapsed,” EFF leader Julius Malema declared in parliament.
The postponement comes as South Africa, Africa’s most industrialized nation, grapples with severe economic challenges. Inflation rose to 3% in December, while unemployment remains alarmingly high at 32%, despite a slight drop in the last quarter of 2024. The country also faces heightened inequality, with more than 60% of its 63 million citizens living in poverty.
Further complicating matters is the loss of U.S. aid, partially linked to a controversial land reform law that former U.S. President Donald Trump claimed enabled the expropriation of land from white farmers.
As the government seeks solutions to fill its coffers, the delay in presenting the budget underscores the deep divisions and challenges within the coalition government.
