Maroc - dailynews.co.za - Business - 20/Feb 07:06

BUSA expresses concern over delayed 2025 Budget announcement

Business Unity South Africa (BUSA) said that the Minister of Finance's decision to postpone the tabling of the 2025 Budget is a significant concern for South Africans, the business community, and the markets.Khulekani Mathe, CEO of BUSA, added that this delay sends a negative message about the Government of National Unity's ability to collaborate effectively for the country's benefit and fulfil its crucial role in determining how national resources will be allocated. “Furthermore, this uncertainty is something we can ill afford. It should have been apparent much earlier that the parties in the Government of National Unity (GNU) were struggling to reach an agreement on the budget, and the postponement should have been announced sooner to avoid compromising the credibility of the National Treasury.”Mathe urged all parties to prioritise the country’s needs over political interests and to use the additional time now available to Cabinet to develop a budget that focuses spending on programmes that promote economic growth. “This is the only sustainable way to achieve a balanced budget without undermining our social spending programmes or harming the economy.”Professor Irrshad Kaseeram, from the University of Zululand's economics department, said that the dispute over the increase in VAT by 2% was the contested issue. “However, a prompt setting of a new date augurs well for the GNU. It’s imperative that the ANC-led GNU understands the concept of consensus decision-making. Apparently, a number of parties took exception to the 2% increase. Moreover, trade-offs and different options need to be presented to the GNU as an essential ingredient of consensus politics in order for political stability and good governance to be entrenched.”BUSINESS REPORT