For the first time in 30 years of democracy, the budget speech has been postponed.

Finance Minister Enoch Godongwana was due to deliver the 2025 budget speech in Parliament at 2 pm on Wednesday, but shortly after proceedings started, Speaker Thoko Didiza announced that she had been informed by the leader of government business – Deputy President Paul Mashatile – that parties in the Government of National Unity have not been able to agree on the budget.

Central to the disagreement is the DA opposing a much-rumoured 2% hike in VAT, which the party says would cripple the economy.

A few hours before Godongwana’s speech, news emerged that President Cyril Ramaphosa had called an emergency Cabinet meeting, so that the Minister could brief parties in the GNU.

This as the DA reportedly threatened to withhold its support for the budget if it contained a VAT hike. The ANC needs the DA’s support to pass the budget in Parliament.

DA Leader John Steenhuisen has declared the postponement of the budget as a victory for South Africans.

He accused the ANC, and specifically Godongwana, of failing to engage meaningfully with the alternative proposals tabled by the DA.

“Following our defeats of the ANC’s plan to hike VAT, we will now fight with the same vigour to introduce a new budget that is anchored in growing the economy, rather than increasing taxes or debt. This historic victory demonstrates the DA’s muscle within the Government of National Unity. For the first time ever, the ANC was prevented from tabling an anti-growth budget. Now is the time to replace a failed ANC VAT budget, with a brand new GNU growth budget.”

Most parties in Parliament appear to support the postponement, while EFF leader Julius Malema says the government has fallen apart, while BOSA have said it reveals a government in crisis.

In a briefing at 3 pm on Wednesday, Godongwana confirmed that an amended Budget will be tabled on March 12. He told the media Cabinet is united in the view that the budget must strike a balance between the public interest, economic growth and fiscal sustainability.