President Cyril Ramaphosa is due to convene a special Cabinet meeting on Monday to deliberate on the contentious Budget.
The Presidency spokesperson Vincent Magwenya confirmed to IOL that the special meeting will take place this afternoon at 2pm.
A different budget proposal is expected to be presented by Finance Minister Enoch Godongwana during the meeting, which is scheduled to begin at 2pm, according to several people with knowledge of the situation.
Due to continued difficulties among government unity partners regarding the proposed two percentage-point increase in VAT, the original Budget presentation was postponed last week and is now slated for March 12.
Speaker Thoko Didiza has announced that “parties” failed to reach an agreement over the proposed 2% VAT increase.
According to Didiza, the government leaders informed her that Government of National Unity (GNU) parties in the executive were not able to agree to the budget.
The parties in the GNU, including the Democratic Alliance, supported the postponement, while opposition parties such as the EFF and MK Party rejected the move.
However, Presidency Minister and Cabinet spokesperson Khumbhudzo Ntshavheni has denied claims that the Budget Speech was moved to March because of party politics.
This is despite, President Cyril Ramaphosa admitting that the speech was moved because of the disagreements.
But the president assured South Africans that a reworked budget - expected to be delivered next month - would protect vulnerable citizens and work for all.
Had the VAT been passed, it would increase from 15% to 17%. This decision has faced significant criticism, with many arguing that citizens are unable to bear such increases.