Plans to increase spending on front-line services hang in the balance
The abandoned VAT increase was meant mainly to fund higher allocations to health and education
01 May 2025 - 17:55
The National Treasury’s plans to increase funding for front-line services are hanging in the balance, after finance minister Enoch Godongwana’s decision earlier this week to scrap a contentious VAT increase.
Officials are now hastily crafting a third iteration of the budget, which has to include savings of R75bn over the next three years to counter the revenue forgone by holding VAT steady at 15%. The new budget will be tabled in parliament on May 21...
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