By Thapelo Molefe
The Democratic Alliance has warned that the Government of National Unity (GNU) could face collapse if the African National Congress forces through a budget the party deems unacceptable.
Addressing the media ahead of a finance committee meeting, DA spokesperson Karabo Khakhau and DA finance spokesperson Mark Burke delivered a strong message, saying the party would not support a budget that included tax hikes and failed to address economic reforms.
Khakhau emphasised that the DA remained committed to ensuring economic policies that promoted growth and job creation.
“We’re not on a back foot,” she stated. “We are still well on our way to our commitment to South Africans to ensure that whatever budget is tabled is one that at its heart has economic reform policies that enlarge our economy and create jobs.”
The DA’s resistance comes amid ongoing negotiations with the ANC, which have yet to yield consensus.
“We were supposed to conclude our conversation with the ANC last night,” Khakhau said.
DA leader John Steenhuisen underscored the urgency of the situation in a post on X.
“Time is almost up. Last night, the ANC refused to finalise an agreement on growth and spending reforms, imperilling the GNU. The DA will oppose the budget unless and until a written agreement is reached,” he said.
The standoff between the DA and ANC stems from two rounds of failed negotiations over the budget speech tabled by Finance Minister Enoch Godongwana.
In the first round, the DA indicated its willingness to accept a 0.5% Value-Added Tax (VAT) increase on the condition that the ANC agreed to repeal the National Health Insurance Act, the Basic Education Laws Amendment Act, and the Expropriation Act. However, the ANC refused to concede.
In a subsequent attempt to reach an agreement, the DA proposed co-authoring the country’s economic and international relations policies with the ANC as part of the GNU framework.
This, too, was rejected by the ANC, further deepening the divide between the two parties.
The DA has drawn a firm line against a proposed increase in VAT, insisting that South Africans could not afford further financial strain.
“There’s nothing reasonable about expecting South Africans, who are already struggling, to dig deeper into pockets that are already leaking,” Khakhau asserted.
She further accused the ANC of failing to take responsibility for decades of financial mismanagement.
“They have mismanaged public funds, they’ve stolen some of them, nobody is in jail, nobody has returned that money. And now they expect South Africans to fit the bill of a mess they created.”
Burke echoed these sentiments, arguing that the DA has presented alternative proposals that would prevent tax hikes while addressing the R60 billion shortfall.
“We’ve proposed cutting wasteful expenditure, reducing unnecessary budgets for advertising, travel and catering and tackling ghost employees in government departments,” he stated.
Despite the DA’s opposition, ANC chief whip Mdumiseni Ntuli has insisted that the budget will pass with or without the DA’s support.
This prompted a direct challenge from Khakhau: “They must try to pass that budget without the Democratic Alliance—we’ll see.”
When pressed on whether the DA would exit the GNU should the ANC push the budget through with support from other parties, Khakhau did not mince her words.
“The Democratic Alliance will not sit and work with a budget that we do not believe serves the best interests of South Africans,” she said.
“If push comes to shove and we find ourselves in a position where the GNU is unworkable, then if we must, yes.”
INSIDE POLITICS