South Africa’s parliament has delayed presenting the annual budget, causing concerns about the country’s coalition government. The Speaker of Parliament, Thokozile Didiza, said that the parties in the executive couldn’t agree on the budget proposals.
The delay has weakened the rand, which fell by as much as 1% against the US dollar. The yield on government bonds also increased. This is the first time a budget speech has been postponed since the end of apartheid in 1994.
The government is considering increasing taxes, including a possible two-percentage-point increase in the VAT rate. The Democratic Alliance, the second-biggest party in the coalition government, opposes the tax increases.
The budget will now be presented on 12 March. The delay has highlighted the increasing strains in the coalition government, which was formed in June last year.