05 June 2025

One of the gains of our constitutional democracy  is the involvement of all South Africans in the determination of laws and mechanisms to exercise our rights. The budget is no longer a determination of a white minority which structured the fiscal framework to benefit the minority whiles excluding the black majority. 31 years later, the African National Congress has taken decisive measures which have developed a people driven government which serves all South Africans and prioritise the Historically Disadvantaged.

We have transformed the legislative process to ensure the public is adequately involved in the decision making process by Parliament. As a tribune of the people, we are Public Representatives and in the exercise of our constitutional obligations, we advance the interests of our constituencies.

We must state it categorically that the ANC has always advocated for the enhancement of the participation of the people in the budget process to ensure the money bills adopted by Parliament is representative of the inputs of the people. A critical fact to recognise is that budgeting is done in a three year cycle. With a Budget tabled annually and a Medium Term Budget Policy Statement, which also includes proposed adjustment. This is important to recognise that the process of public participation has an ongoing effect and consideration in the money bills process.

We should further state that it is the ANC  in Parliament in 2008 that advanced the resolution in the National Assembly to instruct the then Portfolio Committee on Finance to consider a procedure to amend money bills before Parliament. Today we have a Money Bills Amendment Procedure and Related Matters Act of 2009, which outlines a clear process to ensure public participation and to also empower the committee with a process to amend the fiscal framework and the money bills.

The experience of the processing of the 2025 Budget is not a result of a mishandling of the National Budget process as suggested by the Chief Whip of the Opposition, but a product of a robust public involvement and public response on the Revenue proposals to appropriate funds for the different budget votes.

The money bills are tabled by the National executive and the parameters of Parliament are to accept or amend the fiscal framework, and to accept or reject the division of revenue bill or appropriations bill and other money bills.

Therefore, the understanding of the various decision makers at different levels is critical to understand the context of the postponed tabling of the budget, and the second session which considered the budget, and the current processing  of the second tabled Budget.

In the first instance, the Cabinet did not reach consensus on the 2% VAT revenue proposal, resulting in the postponement and non-tabling of the proposed revenue proposal. This was a decision by the National Executive to prevent the negative impact of the policy choice of a 2% VAT increase to increase revenue with the objective of increasing non-interest expenditure significantly and expand the VAT zero rated  food basket.

 This is not a mishandling of the budget but circumspect actions to protect the marginalised.

The second budget had a reduced revenue proposal on VAT at 0.5% over the two years to 16%. This is a matter various sectors raised concerns through the public hearings. The Fiscal Framework and Revenue Proposals was adopted by the Finance Standing Committee with a recommendation to further seek alternative revenue proposals without amending the fiscal framework. Parliament adopted the Fiscal Framework and Revenue Proposal Report.

Pursuance to the public concerns on the VAT increase as a form of increasing revenue collection, the Minister of Finance, Parliament and the two litigants reached a legal settlement in the Western Cape High Court as the Minister had committed to review the budget as a result of the public outcry and the call by Parliament which involved various political parties in the Finance Standing Committee.

The factors that have led to the third tabling of the budget are a product of a robust maturing democracy and the responsiveness of Public Representatives in Parliament and in the National Executive who have responded to the call by the people, sectors, political parties and the leadership of the ANC that has ensured it engages all political parties in Parliament and various sectors to resolve the budget impasse.

The tabling of the third budget is a victory of the people and not mishandling of the National Budget Process and the erosion of fiscal and parliamentary integrity. Public involvement is enshrined in our constitutional framework and political parties need to rather commend the responsiveness of government.

The budget is not just an instrument of achieving what the sponsor perceives as fiscal integrity but the budget must be understood as an instrument of Policy Implementation driven by the People, in the peoples tribune, Parliament.

The budget of 2025 was tabled when the economy has relatively stabilized from the COVID-19 impact, but the effects of the economic crisis caused by the pandemic continue to linger. The progress of the implementation of the Economic Recovery and Reconstruction Plan is creating new frontiers to transform our economy and society.

The recent Statistics South Africa quarterly labour force survey reflects a stagnating economy which requires structural interventions to achieve higher levels of economic growth that tackles unemployment and inequality.

The budget of 2025 tabled by the Minister on 21 May 2025 continues to advance a progressive tax system which collects taxes from the rich to subsidize the poor and to address underdevelopment and the spatial legacy of colonialism and apartheid.

61% of the budget is a social wage and 1 trillion is committed for infrastructure over the medium term to catalyze the economy, and to expand social services to ensure they are reliable and accessible.

The tabled budget continues to protect frontline workers in the education and health sector to enhance outcomes in the sector and to protect jobs.

We welcome the decision of the Rules Committee to adopt specific Rules on directives to enhance the processing of the Fiscal Framework and Revenue Proposals and the Money Bills.

The National Treasury has also committed to enhance their public consultation process to enhance the Budget participation process.

The Minister of Finance need not be censured for been responsive to the call of the Public and Parliament and he tables a budget on behalf of the Cabined, therefore the motion of this debate is rather imagined than a reality. The National Budget is an instrument of Policy Implementation driven by the People.