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Ramaphosa Stands Firm as Budget Crisis Tests Godongwana’s Future

May 6, 2025
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Ramaphosa Stands Firm as Budget Crisis Tests Godongwana’s Future
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President Cyril Ramaphosa has publicly reaffirmed his support for Finance Minister Enoch Godongwana amid South Africa’s unprecedented budget crisis, marking a defining moment for both the administration and the country’s economic policy direction.

The controversial 2025 budget process descended into chaos following public fury over a proposed 0.5% VAT increase—a move that triggered two historic postponements of the budget speech before being struck down by the Western Cape High Court. The debacle has exposed deep tensions between fiscal necessities and public sentiment in an economy still recovering from pandemic-era shocks.

**”This isn’t crisis—it’s democracy at work,”** Ramaphosa declared during a tense media briefing, framing the setbacks as evidence of responsive governance. His defense highlighted the ANC’s delicate balancing act: maintaining investor confidence while acknowledging growing voter dissatisfaction with austerity measures.

The presidency’s stance has drawn sharp criticism from opposition benches, with EFF leader Julius Malema lambasting what he called **”the arrogance of failed technocrats.”** Yet ANC Secretary-General Fikile Mbalula countered that **”mature nations debate tough choices,”** signaling the ruling party’s intention to weather the storm.

All eyes now turn to May 21, when Godongwana will present a make-or-break revised budget. Treasury insiders suggest the new version will replace the VAT hike with targeted wealth taxes—a concession that risks alienating both business leaders and the ANC’s left flank.

Political analyst Lumkile Mondi notes: **”This isn’t just about tax rates—it’s a credibility test for Ramaphosa’s entire economic team.”** With local elections looming, the president’s gamble on continuity could either demonstrate steady leadership or cement perceptions of tone-deaf governance.

As #GodongwanaDismissal trends anew on social media, the finance minister prepares what may become the most scrutinized budget speech since democracy. The outcome will reveal much about whether South Africa’s institutions can withstand policy turbulence—or if the VAT revolt signals deeper cracks in the social contract.

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