Budget Delay Harmful To Sa's Economy: Expert

Senior Research Fellow at the Centre for African Diplomacy and Leadership at the University of Johannesburg, Dr Oscar van Heerden, says the budget cannot be delayed as its approval remains uncertain.

The African National Congress-led government's budget vote hangs in the balance after several political parties rejected the proposed budget , citing concerns over the VAT increase.

Van Heerden warns that failure to pass the budget by Wednesday could bring the country to a standstill, potentially affecting salary payments and essential services.

This is the new reality with coalition politics. And also, it is not new globally. Many countries have found themselves in this situation where the budget has not been approved. In recent years, we think of Belgium that has gone for a number of months and months without a budget. Im not saying thats what the situation should be in South Africa. It will be a devastating blow, and we can only hope that maturity will prevail within the leadership of the various parties in the GNU to make sure that the country is not plunged into this chaos.

2025 Budget Speech Dr Oscar van Heerden delves into some of the contentious issues of the GNU: