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Dear Fellow South African, 

Last week, the annual Budget Speech by the Minister of Finance was postponed for the first time in our democratic history. 

Cabinet decided to postpone the presentation of the budget to allow further discussion on areas of disagreement among parties in the Government of National Unity (GNU). The budget will now be tabled in Parliament on 12 March 2025.

The last-minute postponement was unfortunate. It gave rise to concern and uncertainty among South Africans, investors and the financial markets, who look to the Budget for important signals about the state and direction of our economy.

The budget reflects government’s choices and priorities for the country’s development. Decisions on how to spend public funds have implications for every South African. 

It is therefore essential that the concerns raised by different parties around the budget are properly addressed, in the interests of accountability, transparency and consensus-building. 

This is the first time that the budget is being presented by the Government of National Unity (GNU). It is understandable that this new arrangement would require a different approach in some respects. The process of forging agreement among the political parties in the GNU is still work in progress, but we are certainly getting there. 

Disagreements, contradictions and policy divergence are inherent in governments made up of several political parties. 

It has been more than six months since the formation of the GNU. Despite disagreement between parties on a range of matters, the centre holds. It is a sign of a healthy and robust democracy that such differences may emerge from time to time and be ventilated in public. 

Such differences don’t mean that the GNU is in crisis. It means that democracy is working.

A Government of National Unity by definition infers consensus-building. No one party can impose its will. There needs to be thorough deliberation and meaningful engagement. 

The decision to postpone the Budget Speech and to continue discussions should engender public confidence in the GNU. It should reassure citizens that despite differences of opinion, we are pulling in the same direction. 

As GNU partners, we will continue working for the South African people. As we have done in the past to overcome differences, we will once again find one another. 

The events of last week present us with an opportunity to raise the level of understanding among South Africans around the budget and what it means for them. 

The considerable public interest around the Budget Speech, including from young people and on social media platforms, was greatly encouraging. It is our hope that this sparks a necessary national conversation on how we will fund our national priorities and the trade-offs that will need to be made. 

The reality is that we strive to implement our national priorities in a context of slow growth, limited revenue, high unemployment and a large social wage. The state is simply not able to fund every priority and ambition. 

The critical issue of the public purse must be a subject of discussion and debate not just among political parties, but among all South Africans who aspire to lead lives of dignity. 

The social contract between government and the citizenry relies heavily on accountability and transparency. These have been features of our budgetary process since the advent of democracy. 

The formation of the GNU was the result of the desire by the South African people that political parties work together to move the country forward. 

As we continue to do so, we are adapting and strengthening our existing frameworks for cooperation, partnership and building consensus. 

We are learning, we are adjusting to new circumstances and we are moving forward. 

With best regards,

Issued by President Cyril Ramaphosa