CAPE TOWN - Despite heated debates over a proposed 2 percentage point VAT hike, the Minister has taken a more measured approach, settling on a 0.5 percentage point increase, set to take effect on the first of May.
Many political parties have rejected the proposed VAT increase and some are vowing to challenge it through Parliamentary processes.
In a bold move, the budget allocates substantial funding to infrastructure projects over the next three years, but leaves state-owned enterprises without any additional support.
Meanwhile, the country’s debt crisis persists, with government spending over R400 billion just to service debt, projected to hit R5.69 trillion this year.
This means South Africa will spend more on debt than on vital sectors like health, education, and other key sectors of the economy.
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The budget has sparked mixed reaction - some find it overwhelming and uninspiring, while others see it as a necessary step forward.
While the ANC has welcomed the budget, its main partner in the GNU, the Democratic Alliance opposes the VAT hike, but says there's still room for negotiation.