Recently the Minister of Finance presented his 2025 – 2026 Budget Speech. What happens now?
The Budget Speech approval process in South Africa follows a structured timeline throughout the financial year. Here’s a detailed breakdown with estimated dates:
Budget Speech Presentation
- The Minister of Finance delivers the Budget Speech in the National Assembly.
Parliamentary Debate and Approval (March – April)
- March – April: Parliamentary committees (e.g., Standing Committee on Finance and Appropriations) debate the budget.
- Mid-March: The budget is reviewed by the National Council of Provinces (NCOP).
- Late March: Public hearings and stakeholder engagements take place.
Budget Votes for Departments (April – May)
- April – May: Each government department’s budget is debated separately in Parliament (Budget Votes).
- Parliament must approve individual departmental budgets before final approval.
Final Approval and Enactment (May – June)
- Mid-May: Parliament votes on the final budget.
- Late May – Early June: The Act (which legally allocates government funds) is passed.
- June: The President signs the Act into law.
Implementation and Oversight (July onwards)
- Throughout the year: The Auditor-General of South Africa (AGSA) monitors government spending.
- October – November: The Mid-Year Budget Review assesses whether the budget is on track.
2025 – 2026 Budget
Various political parties have announced that they will oppose the proposed Budget in its current form. Especially the increase VAT (effective 1 May) faces serious opposition. There will an administrative nightmare for VAT vendors (and SARS) if they implement the VAT increase on 1 May and the Budget fail to pass Parliament late in May.
Watch this space!
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