Wednesday, 19 February 2025

The Economic Freedom Fighters (EFF) outrightly rejects the disgraceful and shameful postponement of the 2025 Budget Speech, which exposes the utter incompetence of the National Treasury and the so-called Government of National Unity (GNU). This is nothing more than a desperate attempt by the illegitimate coalition government to mask its internal contradictions, lack of direction, and total failure to provide economic leadership in a time of crisis.

The postponement of the budget is not a sign of democracy, maturity, or consultation—it is a symptom of weak, indecisive, and opportunistic governance that has left millions of South Africans uncertain about their future. The GNU, particularly the right-wing racist Democratic Alliance (DA), is now attempting to spin its own failure as an opportunity to craft a “pro-growth budget.” This is laughable, ahistorical, and outright deceitful. The DA, along with its neoliberal allies, has never cared about the interests of the poor and working class. They have no capacity—intellectually or practically—to produce a budget that prioritises economic growth, development, job creation, and poverty eradication.

The reality is that the 2025 Budget was already finalised, and the only reason for the postponement is the deep divisions within the GNU, particularly over the reckless and disgraceful proposed increase in Value-Added Tax (VAT) from 15% to 17%. The National Treasury and the DA-led neoliberal faction are hellbent on punishing the poor while protecting the white capitalist establishment, and the so-called deliberations are nothing more than a smokescreen for their anti-poor policies.

The EFF rejects with contempt the false notion that there is any meaningful debate taking place within the GNU regarding the budget. There is no “consultation,” no “consensusbuilding,” and certainly no serious effort to craft an alternative economic plan. The postponement is a desperate ploy to pacify public outrage and to create the illusion that the GNU is listening, when in fact it is simply scrambling to secure the approval of its puppet masters in the private sector.

This postponement is a glaring indictment of the GNU’s incapacity to govern and its complete disregard for the poor and working class. If there was any genuine commitment to a pro-poor and pro-growth budget, the government would have long prioritised:

• The scrapping of the VAT increase, which will disproportionately burden the poor.
• The rejection of austerity and expansion of social spending to stimulate economic growth.
• The rejection of privatisation and the immediate recapitalisation of strategic stateowned enterprises.
• The urgent implementation of a wealth tax and decisive action against illicit financial flows to generate revenue instead of further exploiting the poor.

Instead, the GNU is paralysed by its own contradictions, unable to even table a budget because of internal battles for control over public finances. This is proof that this government is incapable of leading South Africa through its economic crisis.

The EFF calls on all progressive forces—trade unions, civil society, and ordinary South Africans—to reject this pathetic attempt to spin failure as progress. The GNU is collapsing under its own contradictions, and it must be confronted head-on. The people must take to the streets and reject the austerity, VAT increase, and continued economic mismanagement by this illegitimate coalition government.

The EFF further calls on the former liberation movement to go back to the drawing board, abandon its right-wing coalition partners, and invite progressive forces to reposition the National Treasury toward an economic agenda that prioritises the fight against poverty, unemployment, and inequality. Anything short of this is a betrayal of the people.

The time for action is now. We must not be deceived by weak and visionless leadership.

As things stand, without a budget, governance has collapsed in South Africa.

ISSUED BY THE ECONOMIC FREEDOM FIGHTERS

Leigh-Ann Mathys (National Spokesperson) 082 304 7572

Thato Lebyane (Media Enquiries) 078 304 7572