Gigaba doesn’t believe drawn-out budget process damaged Treasury’s credibility

Treasury’s budget process was put to the test for the first time when parties in the Government of National Unity disagreed on fiscal policy, forcing leaders to backtrack on proposals.

African National Congress (ANC) Member of Parliament (MP) and former Minister of Finance Malusi Gigaba said he doesn’t believe 2025’s drawn-out budget process has damaged National Treasury’s credibility.

Treasury’s budget process was tested for the first time when parties in the Government of National Unity (GNU) disagreed on fiscal policy, forcing leaders to backtrack on proposals.

After three attempts since the aborted budget speech in February, Budget 2025 was finally passed in the National Assembly on Wednesday night.

Gigaba, who just recently obtained his PhD, spoke to EWN, reflecting on how Treasury fared during the recent headwinds.

Generally thought to be a respected and credible institution, the frustrating budget process put the National Treasury in a tight spot somewhere between fiscal consolidation and political manoeuvring.

“It remains a strong institution for South Africa, but obviously, Treasury now relies on the rest of government and on political parties to be able to negotiate and find compromises to ensure budget processes go ahead within the regulated timelines,” said Gigaba.

But he said there must be better mechanisms to avoid similar issues down the line.

“Otherwise, we will lose credibility in international bodies, and it will affect the credibility of our fiscal policy and processes. It will also affect the position of the country with regards to credit rating agencies, investor opinion, and just how the public views how government functions.”

This is the first time the ANC has needed the buy-in of other parties to pass the budget after losing its parliamentary majority in the 2024 general elections.