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While the DA welcomes the VAT increase about-turn by Finance Minister, Enoch Godongwana, it comes with a temporary impact on the passing of KwaZulu-Natal’s (KZN) budget – this, however, is simply a pause in the process and no cause for alarm.

The temporary suspension is the result of KZN’s Legislature having received correspondence from National Parliament, notifying that Minister, Godongwana has withdrawn the Division of Revenue Bill (B7 – 2025) and the Appropriation Bill (B6-2025), introduced in the National assembly last month. This has ramifications for all provinces as their budget allocations are informed by the national allocation.

It is important to note that while KZN’s budget process has been paused, it has not stopped legislation within the province and that up to 45% of the budget may be spent until the revised budget is passed.

Despite the delays, what is now important is to get the budget right, particularly in terms of alternate revenue generation options and reprioritisation of non-essential expenditure. The DA has made significant proposals dealing with comprehensive fiscal strategies.

We now appeal to Minister Godongwana and national treasury to ensure that the way forward is clearly mapped out during the coming days.

We also call on national treasury to ensure that there are no reductions in KZN’s equitable share or provincial conditional grants. Our province has already been hard-hit with more than R70billion cut from both allocations over the past four years, equating to almost 50% of KZN’s annual budget being cut during this period.

Equally, Minister Godongwana needs to ensure that the provincial government wage increase – due to be funded by national treasury in the original budget, for the first time in many years – remains in place.

All provinces, including KZN, need protection during this revised budget process. As part of KZN’s Government of Provincial Unity (GPU) the DA is committed to safeguarding the public purse, in the interests of all our people.

Issued by Francois Rodgers, MPL - Leader of the DA in the KZN Legislature