By Johnathan Paoli
The African National Congress has reaffirmed its commitment to passing the 2025 budget, despite fierce opposition from the Democratic Alliance and other parties over a proposed 0.5% value-added tax (VAT) increase.
ANC secretary-general Fikile Mbalula briefed the media following the party’s national executive committee over the weekend.
He emphasised the urgency of budget approval to ensure economic stability and growth.
“I can tell you that there has been a back and forth between us and parties. Having spoken to everybody, we think now there is a basis for an agreement with those in the GNU, and even those beyond it,” Mbalula said.
The budget will be voted on in the National Assembly on Wednesday.
Mbalula acknowledged the tense negotiations with its partners in the Government of National Unity, particularly regarding the VAT increase.
He stated that while the ANC had historically opposed VAT hikes, the party had exhausted its options to generate revenue without borrowing.
However, Mbalula reassured the public that the increase was a temporary measure, which would be withdrawn once the economic situation improved.
While the matter was being debated in Parliament on Tuesday, Mbalula insisted that the ANC was working tirelessly to reach a consensus.
“We recognise that the conditions under which we operate are not the same as before. We are now in a power-sharing arrangement under the GNU. There have been issues, especially surrounding VAT, but we need the budget to pass in order for us to proceed to govern, galvanise the economy and ensure stability,” he said.
The ANC has presented a draft framework to all GNU members, including the DA, to address their concerns while ensuring that the government remains functional.
“We are moving closer to each other, and we are confident that a major breakthrough will be reached soon,” Mbalula said.
The DA, however, remains unconvinced.
Party leader John Steenhuisen issued a stern ultimatum, stating that the DA would oppose the budget unless a written agreement addressing its concerns was reached.
The party argues that the VAT increase would place an undue burden on South Africans, especially those already struggling with the high cost of living.
If the budget fails to pass, the ANC may be forced to reconsider its coalition arrangements.
Mbalula warned that any political manoeuvring against the budget could have consequences for the GNU itself.
“The ANC has no intention to wield an axe over any member of the GNU, but they will cut themselves out if they choose to walk away. We are committed to governing in the national interest,” he asserted.
ANC national chairperson Gwede Mantashe also downplayed the notion that the GNU could collapse if the DA withdrew its support.
“If the budget doesn’t pass, we will cross that bridge when we come to it. The GNU will not collapse, and those who do not want to be in government will make their own choices,” he said.
INSIDE POLITICS
