Godongwana’s stitch in time saves budget 2025

By Thebe Mabanga

In the end, Finance Minister Enoch Godongwana had to make do with what limited tools and funds he has.

In an unprecedented budget cycle, he had an impossibly wide range of demands to satisfy, starting with the handful of parties that chose to renegotiate with him, and pressure from the two, the DA and EFF, that headed to court to fend off the VAT increase. 

With the scrapped VAT increase creating a R65 billion revenue hole over the medium term and faced with weak economic growth and little room to borrow more, Godongwana had to increase the general fuel levy for the first time in three years.

He also raised sin taxes above inflation, and pinned his hopes that the SA Revenue Service collects R20 billion more and economic reforms pay off. SARS will receive an additional R7,5 billion over the medium term.

Treasury now forecasts GDP