Minister in the Presidency, Khumbudzo Ntshavheni has dismissed internal conflicts within the GNU over the proposed VAT hike.
Image: Presidency
“Nobody is wearing a party jacket,” said Minister in the Presidency Khumbudzo Ntshavheni in dismissing rumours of contestation in the Cabinet over the VAT hike, despite the DA claiming victory in forcing the postponement of the Budget Speech.
Addressing the media in Cape Town on Thursday, Ntshavheni said allegations of contestation within the Cabinet were unfounded, stressing that the Government of National Unity (GNU) is focused on representing the interests of South Africans, not political parties.
“Rumours of contestation are just that - rumours. In the Cabinet, we don't have political parties,” Ntshavheni said, responding to reports amid the postponement of the Budget Speech by Finance Minister Enoch Godongwana last week.
The delay was attributed to disagreements over a proposed two-percentage point VAT increase, which was expected to be 17%.
The increase was intended to help fund the public servants wage bill and address the country’s crippled rail system.
Ntshavheni emphasised that the cabinet was committed to meeting its deadline and the process would continue as previously planned.
“We will comply with the timeline and conclude the budget process within the mandate of Cabinet and allow the Minister of Finance to be responsible for the matters that relate to his portfolio,” she said.
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A different budget proposal is expected to be presented by Finance Minister Enoch Godongwana on March 12.
Image: Armand Hough / Independent Newspapers
Despite the Democratic Alliance (DA), a member of the GNU, claiming victory over the delay and pledging to contest the VAT increase, Ntshavheni denied any internal divisions.
“Nobody is wearing a party jacket,” she said, referring to the DA.
“We are here to represent the interests of all South Africans.”
She clarified that while Cabinet members are appointed by President Cyril Ramaphosa and serve at his discretion, they act collectively in their roles, not as the representatives of political parties.
But this has not been the case with how the DA acted after the postponement of the speech.
“Members of the cabinet appointed by the President of the Republic, who serve at the pleasure of the President of the Republic, as prescribed by the President's Act that allows him to appoint members of the cabinet to act collectively within the cabinet,” Ntshavheni added.
Ntshavheni also rubbished claims of infighting over the budget, including market-sensitive information.
“The budget is the budget of the Cabinet, but the responsibility to present it lies with the Minister of Finance, as assigned by the Public Finance Management Act (PFMA),” she added.
She reiterated that the postponement was important to tackle South Africa’s financial challenges.
“Cabinet assures South Africans that deliberations within Cabinet on the 2025 National Budget are continuing to determine the best ways to fund our national priorities and ensure the budget reflects the aspirations of all South Africans,” she said.
Although the delay is a first in South African history since 1994, Ntshavheni noted such postponements are a norm in other jurisdictions and are within the provisions of the Public Finance Management Act (PFMA).
The revised budget speech will be tabled on March 12, with new adjustments.
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