South Africa has entered uncharted waters following deep divisions in the coalition government over the national budget that has finally been tabled after a month-long delay.

The Democratic Alliance, the second-biggest party in South Africa’s ruling coalition, said it would only support the national budget if it met certain criteria including placing more emphasis on economic growth.

Finance Minster Enoch Godongwana Wednesday tabled his budget for the for the 2025/2026 financial year, a month after it was postponed following a fall-out with the ANC’s biggest coalition partner over value-added tax hikes.

Economy expert Maarten van Doesburgh has weighed in on the upcoming budget speech, saying that the government need to focus on growing the economy going forward.

The budget stand-off is unprecedented in South Africa, which has been ruled by a grand coalition since July when Ramaphosa’s African National Congress partnered with nine other parties after failing to win an outright majority for the first time since the fall of apartheid.

South Africa's finance minister unveiled Wednesday a budget with a smaller increase in value-added tax than previously proposed, but it was immediately rejected by a key party in the unity government.

South African Finance Minister Enoch Godongwana may have to make changes to the national budget after parties that control more than half the seats in parliament rejected his plans to raise taxes.

Explore how South Africa's proposed 16% VAT rate stacks up against global standards and what it means for consumers.

South Africa's finance minister unveiled Wednesday a budget with a smaller increase in value-added tax than previously proposed, but the move was still rejected by trade unions who say any rise in taxes that will have a negative impact on the country’s poorest is unacceptable.