South Africa has entered uncharted waters following deep divisions in the coalition government over the national budget that has finally been tabled after a month-long delay.

South Africa's National Treasury on Wednesday proposed a smaller hike in value-added tax in a revised budget aimed at smoothing divisions in the ruling coalition, but uncertainty remained over whether it would get the support in parliament to pass.

Business leaders have warned that South Africa cannot get complacent thinking that the tabled budget on Wednesday (12 March) is a done deal, saying that it has not been passed, and great uncertainty lies ahead.

CAPE TOWN (Reuters) - South Africa's cabinet was still meeting on the 2025 budget less than one hour before the finance minister was due to present it in parliament on Wednesday, a source from the Democratic Alliance party said, after the budget was already postponed once for lack of agreement.

South Africa's budget may be tweaked further as more talks between political parties will try to overcome differences over a contentious plan to raise value-added tax, the country's finance minister told Reuters.

South African Finance Minister Enoch Godongwana may have to make changes to the national budget after parties that control more than half the seats in parliament rejected his plans to raise taxes.

Explore how South Africa's proposed 16% VAT rate stacks up against global standards and what it means for consumers.

South Africa's finance minister unveiled Wednesday a budget with a smaller increase in value-added tax than previously proposed, but the move was still rejected by trade unions who say any rise in taxes that will have a negative impact on the country’s poorest is unacceptable.