Godongwana commits Treasury to debt stabilisation amidst revised Budget

The revised budget includes processes as set out in the Money Bills and Related Matters Act

- YOGASHEN PILLAY

FINANCE Minister Enoch Godongwana has assured the country the National Treasury has already commenced work on developing a new fiscal framework that will maintain the trajectory toward debt stabilisation.

This is a crucial element in strength-ening the country's public finances amidst deteriorating fiscus. In March, Treasury projected that gross debt-to-GDP will stabilise in at 76.2% of GDP in the 2025/25 fiscal year, compared with 76.1% in the 2024/25FY, before declining gradually thereafter.

It comes after Godongwana decided to rescind his decision to implement a 0.5 percentage points increase in the val-ue-added tax (VAT) following litigation. The VAT increase proposal was in a bid to raise about R60 billion for the fiscus, which is facing a R75bn revenue shortfall in the medium-term.

"The revised budget will adhere to all established technical processes and con-sultations as set out in the Money Bills and Related Matters Act," Godongwana said on Wednesday.

"This includes formal consultations with the Financial and Fiscal Commis-sion, thorough consultations with all political parties within the Government of National Unity (GNU), as well as Cabinet approval betore presentation to Parliament."

Godongwana added that this com-prehensive review will include the Fis-cal Framework, the Appropriation Bill, Division of Revenue Bill, and the already tabled Rates and Monetary Amounts and Amendment of Revenue Laws Bill.