South African Finance Committee Approves Fiscal Framework Amid Opposition

South Africa's 2025 National Budget has been approved following the adoption of the fiscal framework, which sets the economic policy, revenue projections, and spending limits for the government. The approval came after multiple attempts and was backed by the African National Congress (ANC), Democratic Alliance (DA), and ActionSA, while the Economic Freedom Fighters (EFF) and uMkhonto Wesizwe (MK) party opposed it, primarily criticizing the increase in the fuel levy as regressive and inflationary. Finance Minister Enoch Godongwana emphasized that the budget, which includes increased fuel and sin taxes, avoids austerity while investing over R1 trillion in critical infrastructure to boost economic growth and access to basic services. The process faced some contention in Parliament, including procedural complaints and sharp exchanges among members. The budget aims to balance spending by reducing additional expenditure by R68 billion despite a significant revenue shortfall, with substantial funds allocated for debt servicing over the next three years. The National Assembly’s finance committee’s endorsement now leads to the final legislative approval of the budget.