Cape City — Finance Minister Enoch Godongwana presented his 2025 Finances to Parliament after Cabinet ministers held a positive meeting to discuss about it for a 2d time after they rejected a transformed Finances without the disputed 2% VAT expand.
The Finances presentation modified into as soon as on the birth postponed in February as a consequence of disagreements on the proposed VAT expand among the parties within the Authorities of Nationwide Unity (GNU).
Earnings and Tax Proposals
* VAT price to expand by 0.5 percentage parts in 2025/26 and one other 0.5 in 2026/27 (to 16%)
* No inflationary adjustments to non-public income tax brackets, rebates, and clinical tax credits
* These measures will elevate R28 billion in 2025/26 and R14.5 billion in 2026/27
* R3.5 billion dispensed to SARS this year plus R4 billion over medium term
Key Spending Priorities
* R232.6 billion extra funding to key programs over medium term
* Provinces to fetch R2.4 trillion over Medium-Time period Expenditure Framework ( MTEF) period
* Local authorities equitable piece will enhance from R99.5 billion to R115.7 billion by 2027/28
* Public sector wage agreement will save extra R7.3 billion in 2025/26
* R10 billion to expand Early Childhood Pattern subsidies
* Well being spending to grow from R277 billion to R329 billion by 2027/28
* Social grants increased: Ragged age/disability (+R130), Minute one Give a rob to (+R30), Foster care (+R70)
* COVID-19 Social Reduction of Anguish extended by 365 days (R35.2 billion dispensed)
* R9.4 billion for defence drive and correctional providers and products
Infrastructure Funding
R1 trillion for public infrastructure over subsequent three years:
* R402 billion for transport and logistics
* R219.2 billion for vitality infrastructure
* R156.3 billion for water and sanitation
* Contemporary PPP rules efficient June 1, 2025
* Finances Facility for Infrastructure reconfigured to trail more than one pronounce dwelling windows
* First infrastructure bond to be issued in 2025/26
Narrate Functionality and Finances Reforms
* Treasury to manual efforts to enhance spending effectiveness and efficiency
* Audit of “ghost workers” in nationwide and provincial departments
* Implementation of conditional grant evaluation ideas
* R1.7 billion dispensed for future failures, R4 billion for restoration backlogs
