President Cyril Ramaphosa has expressed confidence that the budget will still be approved, regardless of the opposition from the DA.
The budget, which has already faced widespread rejection from several political parties, is at the centre of a heated political battle, particularly over the controversial proposed increase in the Value Added Tax (VAT) and the Expropriation Act.
Despite pushback from key coalition partners within the Government of National Unity (GNU), including the DA, the African National Congress (ANC) is now turning to opposition parties outside the coalition to secure the necessary votes to pass the budget. The ANC's determination to get the budget approved has intensified in recent days, as the party looks to reach out to groups such as the Economic Freedom Fighters (EFF), the MK Party, and ActionSA.
The VAT hike, initially proposed at a 2% increase, was a major sticking point, with the ANC offering a compromise to reduce it to a 0.5% increase over two years. However, the DA, along with other opposition parties, has vehemently opposed this tax increase, arguing that it would disproportionately harm low-income South Africans who are already struggling under the weight of rising living costs.
Although the ANC has previously stated that it is not looking to disturb the construct of the GNU, it seems the party may have been consulting with other political parties.
In a statement over the weekend, ANC Secretary-General Fikile Mbalula revealed that the party is prepared to seek support outside of the GNU, emphasising that the government of national unity’s statement of intent does not preclude them from negotiating with non-member parties. This strategy has sparked further tensions within the coalition, with the DA accusing the ANC of undermining the spirit of the unity government.
The DA has warned that a deal between the ANC and opposition parties outside the GNU would signal the end of the current coalition, a claim that President Ramaphosa dismissed in a press briefing. "We will work tirelessly to ensure that the budget passes, even if that means negotiating with parties outside our current coalition," Ramaphosa asserted.
"The budget is essential for the stability of the country, and we will make the necessary adjustments to ensure its approval."