It was a saga that unfolded through three drafts, two tablings, a court challenge, and even a moment of unexpected bladder pressure. The parliamentary standing and select committees on finance finally gave their seal of approval to the report on Finance Minister Enoch Godongwana’s 2025 budget. The MPs from the committees convened in a joint sitting brimming with anticipation to deliberate and greenlight the report. One of the key highlights was Godongwana’s proposition to increase the general fuel levy for petrol to R4.01 a litre and for diesel to R3.85 a litre.
Amidst this backdrop, the recent ruling by the Western Cape High Court dismissing the urgency of a legal challenge to the proposed fuel levy hike by the EFF added a layer of tension. However, the Department of Petroleum and Mineral Resources brought a sliver of good news, announcing a forthcoming drop in fuel prices come June – a decrease of 19c for petrol and 50c for diesel.
As the moment of truth arrived, the report was put to a vote. Six MPs, including the chair of the standing committee on finance, Joe Maswanganyi, endorsed the report. On the other side, three MPs, namely EFF’s Omphile Maotwe, and MK Party’s Brian Molefe and Des van Rooyen, stood in opposition. Maotwe vehemently argued against the fuel levy hike, expressing her party’s dissent. Van Rooyen echoed these sentiments, emphasizing the disproportionate impact such a levy would have on the most vulnerable in society. Molefe underscored the inadequacy of revenue generated by the hike, questioning the rationale behind burdening the poor with unnecessary costs within a staggering R2 trillion budget.
The turbulent journey to approve the 2025 budget had started earlier in the year. The initial draft in February faced resistance due to a proposed VAT increase, leading to its shelving. The subsequent version tabled in March, which curtailed the VAT hike, encountered legal challenges that ultimately led to the abandonment of the increase.
In a lighthearted moment before the vote on the report, Action SA MP Alan Beasley humorously requested a brief recess for a comfort break, injecting a moment of levity into the otherwise tense atmosphere. This unexpected interlude offered a brief respite, breaking the tension that had gripped the room.
The deliberations and debates surrounding the budget underscore the intricate dance between fiscal policies and social welfare. The dissenting voices within the committees highlighted the concerns over the equitable distribution of the budget’s burdens and benefits. The tussle over the fuel levy hike epitomized the broader societal challenge of balancing revenue generation with the protection of the most vulnerable.
As the gavel fell, and the report on Budget 3.0 was finally approved, it marked not just a bureaucratic milestone but a reflection of the intricate tapestry of interests and ideologies that shape fiscal decision-making. The journey to this moment had been arduous, marked by twists and turns, but ultimately culminating in a significant decision with far-reaching implications for South Africa’s economic landscape.
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