The postponement of the budget speech was an unfortunate piece of history in more ways than one. For the first time in democratic South Africa, the national budget — a fundamental pillar of governance — was subjected to the whims of internal party politics at the 11th hour.
The subsequent failure to present a budget on time threatened to rattle investor confidence, send shock waves through financial markets and further erode public trust in the government.
The postponement may be an omnishambles, but it also presents a crucial opportunity to address South Africa’s challenges with fresh urgency. Instead of merely adjusting figures, this delay should be used to rethink fiscal priorities and redirect spending for growth.
Increased investment in infrastructure, expanded education funding and policies that stimulate economic growth must take centre stage.
While the delay was ostensibly about a disagreement over tax proposals, it is important to understand the budget process so as to illustrate just how narrow political interests came in at the last minute to hijack the process.
The budget process begins with extensive planning by the National Treasury, which sets spending ceilings and economic priorities for departments. Several months before the new financial year starts on April 1, departments submit their proposals, which are reviewed by the Treasury and discussed in cabinet committees.
Once finalised and approved by the cabinet, the finance minister presents the budget to parliament, typically in February. This budget speech includes the Appropriation Bill, which allocates funds to government departments, and the Division of Revenue Bill, which determines how funds are distributed among national, provincial and local governments.
After the budget is tabled, it undergoes parliamentary scrutiny, starting with the standing and select committees on finance and the appropriations committees, which review the proposed allocations and fiscal policies. These committees hold public hearings, allowing stakeholders to make submissions, while government departments must justify their budget requests before parliament.
The budget process must be sacrosanct. No matter the political arrangements in government, the state’s fiscal framework must be protected from factional battles
The budget is then debated in the National Assembly and must be passed within four months of the financial year beginning. Both the Appropriation Bill and the Division of Revenue Bill require approval from the National Assembly and the National Council of Provinces.
Once the budget is enacted, government departments begin implementing their allocations, with parliament and the auditor-general monitoring spending through quarterly reports and annual audits to ensure accountability.
Budgets are not mere financial statements; they are the foundation upon which the state delivers services, invests in growth and ensures the wellbeing of its people. A stable, predictable and transparent budgeting process is the lifeblood of any functioning democracy. They allow businesses to plan, public services to operate efficiently and citizens to hold the government accountable. To jeopardise this process for the sake of internal political manoeuvring is irresponsible.
A delayed budget is more than an inconvenience; it has real and dire consequences. It affects government departments’ ability to function, delays infrastructure spending and sends mixed signals to local and international investors, who crave certainty and stability. The economy, already fragile, cannot afford such uncertainty.
The budget process must be sacrosanct. No matter the political arrangements in government, the state’s fiscal framework must be protected from factional battles. This moment is a stark reminder that leadership is about rising above party politics to put the country first.
The GNU must immediately take responsibility and ensure that South Africa’s economic and governance structures are not further destabilised by internal disarray.
What must be communicated to South Africans urgently is threefold:
- First, the funding priorities of the GNU and its plan for the country. The GNU has outlined its key funding priorities, which are aimed at driving sustainable economic growth, improving service delivery and addressing social challenges. These priorities include investments in infrastructure, education, health care and job creation, as well as measures to combat corruption and enhance governance. The GNU is committed to ensuring public funds are allocated efficiently and transparently, in alignment with a well-co-ordinated and coherent national development plan that seeks to stabilise the economy, attract investment and uplift communities.
- Second, the full reasons for postponement of the budget. The decision to postpone was taken after careful consideration of various factors that have affected the government's ability to finalise the necessary financial planning. These factors include negotiations within the GNU, further consultations with relevant stakeholders and unforeseen administrative delays. Additionally, the government has had to account for changing economic conditions and fiscal constraints, which require a different approach to resource allocation. The postponement is intended to allow for a more comprehensive and inclusive budget.
- Finally, the full new timetable for the budget process. Following the postponement, the government has released a revised timetable to ensure transparency and provide clarity on the next steps. The new schedule includes a series of consultations with key stakeholders, including parliamentary committees, provincial governments and civil society.
The government remains committed to delivering a well-structured and accountable budget that aligns with the country's goals while ensuring fiscal responsibility.
Ultimately we must follow the law on this matter, as the last thing we can afford is a national budget ending up in court.
South Africa deserves a government that respects institutional processes, upholds democratic norms and recognises that a budget is not a political bargaining chip — it is a national imperative. If this GNU cannot provide that leadership, it must reconsider its purpose and legitimacy.
• Maimane is the leader of Bosa and chair of parliament’s standing committee on appropriations
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