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 ending deadlock within the coalition government, but it was not clear if it would get the support in parliament to pass.

South Africa’s biggest political party plans a 0.75 percentage-point increase in value-added tax in a revised national budget this month, warning it will approach groups outside the ruling coalition if those in it don’t back the move,