Finance Minister Enoch Godongwana has announced a lower VAT increase of half a percentage point this financial year and another 0.5 percentage point hike in the next financial year, bringing the VAT to 16% in 2026. Some political parties, including the Democratic Alliance, have announced that they will not support the Budget Speech in its current form.
National Treasury says it expects the country's economy to grow by 1.9% in 2025 and to average 1.8% over the next three years. Government says it expects a growth recovery to be supported by improved investor confidence, stable electricity supply, lower interest rates and a declining risk premium. To unpack the budget, we are now joined virtually by a policy writer, researcher, and political analyst, Tara Roos.
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