By: Buhle Mbhele
The National Assembly has passed the 2025 Fiscal Framework and Revenue Proposals, with 268 Members of Parliament (MPs) voting in favour and 88 against.
The African National Congress (ANC) led the support with 145 votes, followed by the Democratic Alliance (DA) with 80 votes. The newly formed uMkhonto weSizwe (MK) Party and the Economic Freedom Fighters (EFF) opposed the proposals, while Build One South Africa (BOSA) abstained from voting.
The approval of the framework is a key step in the national budget process, as it sets out the government’s spending limits and revenue expectations for the financial year ahead.
Finance Minister Enoch Godongwana emphasised that the budget does not represent an austerity agenda, but rather aims to increase expenditure on critical public services while ensuring fiscal sustainability.
“This framework is about balancing growth with social priorities. We are committed to increasing investment in education, healthcare, and infrastructure while maintaining a responsible approach to borrowing,” said Godongwana.
The framework underpins the Medium-Term Budget Policy Statement (MTBPS) and guides allocations in key sectors such as social grants, crime prevention, energy reform, and job creation initiatives.
The fiscal plan comes at a time of heightened political scrutiny and economic uncertainty, following the 2024 general elections, which produced a more fragmented Parliament and growing calls for coalition governance and transparency in public spending.
Treasury officials have warned that failure to implement prudent fiscal measures could lead to further credit downgrades and increased borrowing costs, affecting long-term growth.
The Appropriation Bill, which details how funds will be allocated to various departments and programmes, is expected to be tabled and debated in the coming weeks.
