(Bloomberg) -- South Africa’s rand and stocks slumped after lawmakers delayed the presentation of the annual budget, raising concern about the stability of the coalition government that has governed the country since elections in May last year.

The delay was due to a dispute among parties over a proposed increase in Value-Added Tax. The Democratic Alliance, the second-biggest party in the the so-called government of national unity, would not agree to an increase in the VAT tax rate to 17% from 15%, its leader, John Steenhuisen, said in an emailed statement.

The revised budget will now be presented on March 12. It’s the first time a budget speech has been postponed since at least the end of apartheid in 1994.

The 10-party-coalition government was formed in June last year, a month after the African National Congress lost its parliamentary majority for the first time since it took power in 1994. The alliance agreed to prioritize growing the economy, finding favor with investors and fueling gains in the rand and government bonds.

The budget delay had raised “very real concerns about the ability of the government of national unity to hold together,” said Razia Khan, head of research ast Standard Chartered Bank Plc. “But if anything, the fact that the budget was pulled at the last minute means the GNU will probably walk away from this intact. If it becomes clear that the coalition isn’t being threatened, the market may well recover.”

The FTSE/JSE All Share Index fell as much as 0.8% before paring losses. A sub-index tracking general retailers fell 1.9%, leading the decline.

The rand weakened 0.9% to 18.5715 per dollar by4:05 p.m. in Johannesburg, while the yield on 2035 government bond climbed eight basis points to 10.60%.