Cabinet gives Godongwana a variety of options on the Budget

By Simon Nare

Cabinet has provided Finance Minister Enoch Godongwana with options to increase the budget deficit, but it appears that the value-added tax increase of two percentage points is off the table.

In a statement released on Tuesday, the Cabinet said that in a special meeting convened on Monday, it concluded the process of considering inputs to Godongwana to fund the 2025/2026 financial year and medium-term budget.

It added that in compliance with the provisions of Section 27 of the Public Finance Management Act, Cabinet had mandated Godongwana to select from the discussed options and fund the Budget.

Although the press statement was scant on details, it did point out that when the minister revised the Budget, he must consider the fiscal constraints of the country, mitigate the impact on the poor and middle-income households and support economic growth.

“With the conclusion of the Cabinet input process into the