South Africa's national budget was postponed on Wednesday because the two biggest parties in the ruling coalition disagreed over raising value-added tax, an unprecedented delay that caused the rand and government bonds to fall.

South Africa’s budget announcement by the finance minister has been abruptly canceled and rescheduled for next month over a dispute among parties in the governing coalition.

South Africa's Finance Minister Enoch Godongwana has been forced to postpone the unveiling of the national budget following sharp disagreements within the coalition government.

The reason for the abrupt cancellation was the failure of the minister to get cabinet approval for the proposal to raise value added tax (VAT) from 15% to 17%. VAT is the second biggest contributor to tax collection after personal income tax, followed by corporate taxes.

The unprecedented delay in the presentation of South Africa’s budget shouldn’t be seen as a crisis and wouldn’t derail the country’s 10-party ruling alliance, President Cyril Ramaphosa said.

South Africa's rand weakened on Wednesday, after the national budget was postponed until further notice due to disagreements within the coalition government. At 1402 GMT, the rand traded at 18.57 against the dollar,

Africa's largest economy has faced a burgeoning debt and stagnating economy that threaten to derail the country's coalition government.

The African National Congress and Democratic Alliance disagree over proposed VAT increases, casting doubt on the ruling coalition's ability to govern.

National Assembly Speaker Thoko Didiza told lawmakers that such a postponement had never occurred in the past 30 years. The budget is now expected to be tabled on 12 March.

Officials say pro-business Democratic Alliance and senior figures in African National Congress objected to VAT rise