Finance Minister Godongwana refuses to resign as Fikile Mbalula warns against another weekend special! Finance Minister Enoch Godongwana has made it clear he has no plans to step down, despite mounting pressure and calls for his resignation following the 2025 budget impasse.
Godongwana announced at a media briefing on Wednesday that a third revised budget will be tabled in Parliament on 21 May.
This follows a court ruling that reversed the recently proposed value-added tax (VAT) increase.
Finance Minister Godongwana
The 1% VAT hike, which was set to be implemented over two fiscal years, was suspended by the Western Cape High Court, forcing the National Treasury to return to the drawing board.
The new budget review will incorporate a revised fiscal framework and several legislative instruments, including the Division of Revenue Bill.
Godongwana won’t resign over budget impasse
During the briefing, Godongwana referred to the ongoing fiscal situation as an “uncharted terrain”, citing the complexities introduced by the current government of national unity (GNU).
The minister contrasted this with the past, when the ANC’s parliamentary majority ensured a seamless budgetary process.
“Now, we are in a coalition government,” he said.
Although he acknowledged the process had been “messy” and stated he was “not going to put the blame on anybody,” Godongwana pushed back against the notion that he should resign for fulfilling his constitutional duty by tabling the budget.
“By the way, that decision does not lie with me, it lies with the president. But I am mindful of the fact that the president has been participating in this process.
“He understands the nature of the challenges we have been experiencing in dealing with this problem,” the minister said, stressing that he does not intend to vacate his post.
[Watch Live] Treasury briefs media on 2025 Budget technical process that must take place #GovZAUpdates
https://t.co/OlMFLQzaIr— South African Government (@GovernmentZA) April 30, 2025
Treasury to work on revised budget – Godongwana
On the likelihood that Parliament will approve the revised budget, Godongwana said he could not predict how MPs will handle the matter.
“Given these complexities of coalition politics, we have got to work hard to produce a document which will be saleable.”
When asked if the Treasury’s credibility had been damaged in the eyes of investors due to the impasse, Godongwana maintained that the final budget should be the true measure of the department’s work.
“The credibility issue is going to arise out of the final budget that’s adopted; whether that budget will reflect fiscal sustainability and prudence.”
He also pointed out that investors are familiar with the instability of coalition governments, particularly in advanced economies.
“For them, it’s not something new.”
ANC backs Godongwana
ANC secretary-general Fikile Mbalula also weighed in and rejected calls for Godongwana’s removal.
Mbalula referred to the short-lived appointment of Des Van Rooyen as finance minister during Jacob Zuma’s presidency.
“We are not going to have a situation, as much as it is the president’s prerogative, a weekend special again.
“We are stabilising the country and at the same time, we will take cogent and informed decisions.
“It can’t be when we are faced with a big challenge like the budget impasse, the first resolution is to dismiss the minister,” he said at an ANC media briefing.
Watch the briefing below:
Mbalula labelled the resignation demands as mere “political posturing”.
He criticised the Democratic Alliance for escalating the VAT issue to the courts, stating this was “completely unnecessary”.
“All matters could have been settled outside court,” Mbalula remarked.
