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Budget 2025 | The good, the bad and the unexpected

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Value-added tax has increase by 0,5 percentage points this year. Another 0,5 next year, will push VAT up to 16 percent by April 2026.
The article from MSN discusses South Africa's 2025 Budget, highlighting several key points. Finance Minister Enoch Godongwana presented a budget that included a mix of positive, negative, and surprising elements. On the positive side, there were no significant tax increases, and social grants were extended, providing relief to many citizens. However, the budget also introduced some austerity measures, with cuts in government spending, particularly in areas like infrastructure and public services, which could impact service delivery. Unexpectedly, there was an announcement regarding the restructuring of state-owned enterprises, aiming for greater efficiency and possibly privatization or public-private partnerships. Additionally, the budget addressed the ongoing energy crisis with new funding for Eskom to improve electricity supply, but it also raised concerns about the growing national debt and the sustainability of current fiscal policies. Overall, the budget reflects a balancing act between economic recovery efforts and fiscal responsibility amidst challenging economic conditions.

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[ https://www.msn.com/en-za/news/other/budget-2025-the-good-the-bad-and-the-unexpected/ar-AA1AO8uP ]