Budget 3.0 sparks political divide: Praise from unity government, fierce rejection from opposition

POLITICAL parties in the Government of National Unity (GNU) have welcomed Budget 3.0 by Finance Minister Enoch Godongwana, saying it is pro-poor, while the opposition rejected it as superficial and out of touch with the nation’s economic realities.

Delivering his budget speech in Parliament on Wednesday, Minister Godongwana outlined key fiscal priorities, including sustained investment in infrastructure, health, education, and social grants, alongside a firm stance on maintaining the VAT rate at 15%.

The Democratic Alliance (DA) praised the speech, stating that Godongwana presented a Budget proposal which is a manifestation of coalition politics in action.

“It is a workable outcome in the context of trying economic times,” it said.

The party said was not prepared to get behind a budget that maintained unsustainable government expenditure on the back of raising VAT, making struggling South Africans pay for inefficiencies and waste in Government - “but today's version from Minister Godongwana has gone some way to undo this.”

Speaking on the sidelines of the budget speech, IFP leader, Velenkosini Hlabisa, described the budget as “good”.

“The good aspect is that the frontline services, education, health, and social grants were maintained. More funding is going to infrastructure, which will generate job opportunities and create an opportunity for the country to grow its economy,” Hlabisa said.

The ANC has also welcomed the budget, indicating this will work well for the people and economy.

ANC national spokesperson, Mahlengi Motsiri-Bhengu, said the budget was developmental and struck a careful balance between ensuring economic growth.

Freedom Front Plus (FF+) also welcomed the budget.

Key takeaways from the budget include:

- Increase on general fuel levy to raise revenue

- Budget allocation for health and education increased.

- Economic Growth revised to 1.4%.

- The government will be spending R1.3 trillion (across three years) to service debt.

- VAT will remain at 15%.

However, the EFF leader Julius Malema said this was just an austerity budget and not pro-poor.

“So clearly, this is not a pro-poor budget, and as a result, we don't support it. Everything else that was said is what will have been told and was always disagreed with that,” Malema.

MK Party’s Des van Rooyen said there was no budget, but all big english and empty promises.

ActionSA only welcomed the additionalR7.5 billion was allocated to the South African Revenue Service (SARS)over the medium term—an investment we have long championed.

But they rejected the regressive suite of taxes and levies, particularly in the absence of meaningful action to curb government wastage.

Build One SA's Roger Solomons said South Africans cannot afford to be force-fed a status quo budget. Yet that is exactly what Godongwana delivered. It is a budget that clings to old ways, ignores the national mood, and fails to chart a bold course out of economic stagnation and mass unemployment