Godongwana urges MPs to ensure proper expenditure of R1 trillion infrastructure budget

IOL News

11-06-2025

The report on the Fiscal Framework and Revenue Proposals easily garnered the majority vote from the Government of National Unity partners and other smaller parties.
Finance Minister Enoch Godongwana on Tuesday challenged parliamentarians to ensure that the R1 trillion allocated for infrastructure in the 2025/26 budget was spent efficiently and effectively.
Speaking moments before the vote on the Fiscal Framework and Revenue Proposals and report of the standing committee on finance, Godongwana said he has discharged his responsibility.
'MPs have to make sure that this R1 trillion on infrastructure is spent effectively and efficiently,' he said.
His comment was a sequel to the remarks by National Coloured Congress leader Fadiel Adams who sympathised with Godongwana after he was asked 'to pull off a miracle with nothing in revising the budget'.
'That should be the concern of these members … If not spent properly, that is your duty as MPs to do oversight,' he said.
The report on the Fiscal Framework and Revenue Proposals was tabled in Parliament for the third time.
On Wednesday, the report garnered the majority vote from the Government of National Unity (GNU) partners and other smaller parties.
The report was passed with 268 votes in favour, 68 MPs, from the MK Party, EFF and United African Transformation were in opposition and two abstained.
Godongwana, who had to redraft the budget and scrap initially proposed VAT increases, said it was a painful journey to have the budget adopted.
'From the National Treasury's perspective, we drew a number of lessons, but I suspect also members of this House must draw a number of lessons as to how we in practice are to manage debate around the Fiscal Framework moving forward,' he said.
The passage of the Fiscal Framework and Revenue Proposals was despite the adjustment in the fuel levy, which was criticised by many during the debate.
Tabling the report, ANC MP and standing committee on finance chairperson Joe Maswanganyi said Godongwana's third budget presentation underscored a steadfast commitment to fiscal responsibility and transparency.
Maswanganyi said the budget adoption process within a coalition government can be quite complex due to the multitude of interests involved as coalition partners often bring diverse priorities, ideologies, and agendas to the table, which can complicate consensus-building efforts.
'Anyone calling for the Minister's head for the budget delay, is out of tune with coalition government dynamics all over the world,' he said in veiled attack on the MK Party, whose motion to censure Godongwana failed on Tuesday.
Maswanganyi said during the budget hearings, stakeholders had welcomed the withdrawal of the VAT increase and additional allocations to SARS.
'The stakeholders, however, raised concerns about the proposed adjustments to the fuel levy, the lack of adjustment to PIT (personal income tax) brackets, above-inflation increases in excise duties, the withdrawal of zero-rated food items and the National Treasury's failure to increase Social Relief of Distress grant allocations,' he said.
DA spokesperson on finance Mark Burke said his party supported the Fiscal Framework because it reflected some critical breakthroughs for ordinary South Africans.
'This is not a moment for celebration, it is a moment to push even harder for real economic reform that streamlines government, creates jobs and delivers growth,' Burke said.
He praised the DA's firm stance against the VAT hike, securing billions in infrastructure investment, a commitment to root out ghost workers and an urgent review of government spending.
'These represents real breakthroughs that protect both the poor and the economy, but they are not enough,' Burke said.
MK Party's Des van Rooyen said the GNU has subjected the country to a high fuel levy increase.
'Fuel levy is the most regressive taxing system and far worse than VAT is,' he said.
Van Rooyen also said the report refusing their proposal for the introduction of a wealth tax, confirmed that 'the so-called GNU was a platform to protect the wealthy few, using puppets'.
The EFF'S Omphile Maotwe said her party rejected the Fiscal Framework that was supported by the GNU, which replaced VAT with 'the regressive fuel levy that will affect the poor and the working class and failed to adjust the personal income tax brackets in line with inflation'.
'The Minister of Finance has declared to increase fuel taxes without even bringing a bill to Parliament. This tax is already in effect. It is a violation of the basic constitutional principle that no tax be imposed without the authority of legislation,' she said.
The ACDP's Steven Swart said they welcomed the removal of VAT but it was sadly replaced by the maligned fuel levy hike.
'We will support the report but will be closely monitoring it. We want to be builders, not breakers,' said Swart in backing the Fiscal Framework report.
BOSA leader Mmusi Maimane, whose party abstained in the vote, said the obsession should be about the rate of investment brought into the country, saying the projected economic growth was far too low.
'I suggest that we be aggressively declaring economic zones and giving infrastructure support, digital connectivity, efficient public transport and ethical government,' he added.