Minister of Finance Enoch Godongwana says insufficient revenue collection during the past financial year has caused the reduction in government spending allocation for 2025/26 budget.
He told the four committees of Parliament on Finance and Appropriations that National Treasury was forced to do moderations on the budget proposal.
That substantial reduction in revenue has required us to do additional smaller adjustments on the revenue side. But primararly we had to moderate our ambitions. I must make that point moderate, because our ambitions that we were talking about was to increase rather than to cut budget.
On the 12th we increased the budget by R230 billion but we still increased the budget by R108.1 billion. So we moderated our ambitions but we still increasing. And that is general to deal with the impact on social services particularly in provinces. Link to that we make the point that this budget is not losing sight to the bigger picture of economic stability.