South Africa has entered unchartered 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 budget may be tweaked further as more talks between political parties will try to overcome differences over a contentious plan to raise value-added tax, the country's finance minister told Reuters.

South Africa's finance minister unveiled Wednesday a budget with a smaller increase in value-added tax than previously proposed, but it was immediately rejected by a key party in the unity government.

The South African rand fell on Wednesday as disagreements in the ruling coalition persisted despite the finance minister scaling back the size of a contentious tax hike in a revised budget. The budget has been the biggest test so far of South Africa's fractious coalition politics,