Cape Town – The ANC is struggling to secure enough votes to pass Finance Minister Enoch Godongwana’s proposed budget, with its largest coalition partner, the DA, reportedly refusing to support it without key concessions.
According to Times Live, the DA presented a list of demands to the Presidency on Friday, including the scrapping of import tariffs, withdrawal of draft NHI Fund regulations, and an audit of ghost workers in government.
However, sources indicate the Presidency rejected these demands, viewing them as excessive.
A 0.5% VAT increase, set for this year and next, remains a major point of contention. While most opposition parties oppose it, Godongwana revealed last week that the DA privately agreed to back the increase if the controversial Expropriation Act is scrapped.
“The DA has sent a letter to the president accepting 0.5% in exchange for things that are outside the budget, like the Expropriation Act and so on,” EWN quoted the minister as saying.
He said that Treasury was fully open to engaging with Parliament to reach a consensus on the budget.
“We accept that Parliament has got authority to amend the budget but we would plead that matters be focused on how to make this budget efficient,” said Godongwana.
The IFP, another key GNU partner, initially rejected the VAT hike but now supports it as a temporary measure.
ANC maintains budget will be passed with or without DAhttps://t.co/TPlVQ3qorT
— eNCA (@eNCA) March 30, 2025
With 159 seats, the ANC needs 42 more votes to pass the budget. The DA holds 87 seats, the IFP 17, and other GNU parties 22. The ANC insists that negotiations with various parties are ongoing and remains confident the budget will be approved.
Despite rising tensions, ANC spokesperson Mahlengi Bhengu-Motsiri dismissed concerns about a coalition collapse, emphasising that discussions and compromises are part of the democratic process, The Citizen reported.
“It doesn’t spell the end of the relationship. We are not in this relationship because we want to, but because it is in the nation’s interest. We are not pronouncing on dissolving the GNU; that resolution will not come from us,” Bhengu-Motsiri said, according to the report.
She added: “Consensus is normal in a democracy. The GNU agreement does not say we cannot speak to other parties when we have shared views. This is a democratic process. Parliament has many parties.”
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Compiled by Betha Madhomu
