After two failed budget framework attempts, all eyes are on Finance Minister Enoch Godongwana, as he is set to deliver the third version of his budget.

Godongwana and some other members of Parliament will be at the Cape Town International Convention Centre for the occasion on Wednesday.

This budget will exclude the contentious increase to VAT, but it is not yet clear how he will work to balance the anticipated R75 billion shortfall because of this. Major cuts to government expenditure are expected.

Godongwana will also introduce the Appropriation Bill and table the 2025 Division of Revenue Bill, which was previously withdrawn “in order to propose expenditure adjustments to cover this shortfall in revenue”.

All will be revealed at 14:00 on Wednesday.

Cape Town Mayor Geordin Hill-Lewis said his metropole cannot afford another cut to municipal or infrastructure funding. He issued a direct appeal to Godongwana, ahead of the announcement, not to cut the allocations for this to balance the budget.

“Because these are essential for improving basic services and fixing infrastructure.”

Hill-Lewis criticised the national government for wasteful spending and warned against pushing the financial burden onto local authorities.

He said Cape Town has already seen over R107 million slashed from its grant funding during the 2023/24 financial year.

“There is more than enough waste and excess that can be cut in national government to balance the budget, and we are absolutely opposed to any cuts being passed down to municipalities, or indeed any further cuts in infrastructure spending,” he said.

Furthermore, Hill-Lewis noted that the City utilised at least 99% of all grant funding since 2020, particularly in upgrading informal settlements and delivering housing for the poor.

“The national government can’t bemoan the state of cities, and then continuously slash municipal infrastructure and service delivery allocations whenever they need to find money.”

Meanwhile, a coalition of labour unions and community organisations, known as People Against Budget Cuts, argue that austerity measures are a political choice, not a necessity, and warn that further budget cuts could deepen poverty and cripple essential public services.

“Austerity is not fiscal responsibility – it’s a political choice. Since 2020, budget cuts have hollowed out public services. Clinics are short-staffed. Schools can’t afford textbooks or repairs. Social grants have stagnated. These cuts have already pushed millions deeper into poverty,” read the organisation’s statement.

This article has been updated with additional information.