South Africa's government is facing intense negotiations over its 2025 budget, with political parties clashing over a proposed increase in value-added tax (VAT). The finance minister has indicated that further adjustments may be made as discussions continue. The budget also includes plans to boost spending on health and defense, partly in response to reduced aid from the United States. However, the proposed VAT hike has sparked concerns about the rising cost of living. The cabinet was still finalizing details just before the budget presentation, highlighting the high-stakes nature of the debate.
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