South Africa’s two biggest political parties, the African National Congress (ANC) and the pro-business Democratic Alliance (DA), are still struggling to reach an agreement on the national budget. The deadlock continues to be a significant challenge for the coalition government, which was formed last year after the ANC, the party that led the country’s fight against apartheid, lost its parliamentary majority for the first time since 1994.
The budget, which is a crucial document for the country’s economic management, has become the largest test for the ANC since it lost its dominant position in parliament. The ANC now needs the support of at least one other major party to pass the budget, but the DA, South Africa’s main opposition party, has been demanding more influence over policy decisions. The negotiations have been dragging on for weeks, with both sides yet to reach a compromise.
John Steenhuisen, the leader of the DA, expressed his party’s frustration on social media platform X, saying that the ANC had refused to finalize an agreement on key issues such as growth and spending reforms. “This imperils the coalition,” Steenhuisen said, adding that the DA would oppose the budget unless a written agreement was reached. The two parties are ideologically opposed on many matters, such as education, land reform, and healthcare legislation, and have often had disagreements in the past. However, they have managed to govern together despite these differences.
The ANC, on the other hand, is confident that it has enough support within the party to push the budget forward. Mdumiseni Ntuli, the ANC’s chief whip, told local broadcaster Newzroom Afrika that the party believed it had “sufficient consensus” within its ranks to clear the first parliamentary hurdle, which is a meeting of the Standing Committee on Finance to discuss the fiscal framework. This meeting, which is scheduled for Tuesday, is expected to set the stage for a vote on the budget in the National Assembly.
The National Assembly is due to consider the recommendations from the parliamentary committee, with a potential vote on the matter scheduled for Wednesday. This vote is crucial, as it will determine whether the budget can move forward or whether more negotiations will be needed.
The budget for the fiscal year starting on April 1 was initially set to be presented in February. However, the process was delayed because of disagreements within the coalition government. One of the main sticking points was the proposal to raise the value-added tax (VAT) by two percentage points. This plan faced strong opposition from several parties, which led to the delay. In March, Finance Minister Enoch Godongwana tabled a revised budget, proposing a smaller VAT increase of one percentage point over two years. However, this proposal was also rejected by most major parties in parliament, further complicating the negotiations.
As the talks continue, South Africans are closely watching the situation. The outcome of these negotiations will have a significant impact on the country’s fiscal policies and overall economic stability. The ANC and DA are under pressure to find a way to move forward, as failure to pass the budget could have serious consequences for government spending, public services, and economic growth.
President Cyril Ramaphosa of the ANC and Steenhuisen of the DA are expected to hold talks later on Tuesday to try to resolve the deadlock. The outcome of these discussions will be closely followed by both the media and the public, as the country faces growing challenges, both politically and economically.
