The postponement of the 2025 Budget tabling and the ongoing Parliamentary process have raised concerns about government finances and operations.

In response, the National Treasury has clarified how the budget system operates and reassured the public that government services will continue uninterrupted.

Key Points:

Budget Timing and Flexibility: While the national budget is usually presented in February, the law allows for it to be tabled any time before the end of March. In exceptional cases, it can even be tabled after the start of the financial year.

Current Status: The 2025 Budget was tabled on 12 March and is currently under review by Parliament.

Parliamentary Consideration: The budget includes several key components, such as the fiscal framework, the Division of Revenue Bill, and the Appropriation Bill. These must be processed in a specific sequence, with Parliament currently deliberating on the fiscal framework.

Historical Precedent: Since the beginning of South Africa’s democratic era, the budget has often been passed after the financial year has started, which is legally permitted.

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Spending Continuity:

• If the budget is not passed before the financial year begins on 1 April, the government can withdraw funds from the National Revenue Fund.
• In the first four months, up to 45% of the previous year’s budget can be used.
• After that, withdrawals are limited to 10% per month.
• These funds ensure essential services continue but cannot be used for new projects or policies until the Appropriation Act is enacted.

Service Delivery Unaffected:

The public should not worry about delays in critical services such as social grants, as existing commitments will be met.

The National Treasury says it is working with Parliament to ensure the timely passage of the 2025 Budget.

Despite the procedural delay, the government has emphasized that departments will continue operating as usual, with legally provided financial measures ensuring stability in service delivery.

To read the full statement from Treasury, visit their website.