Power-sharing struggle! – ‘We need this budget to pass,’ says Mbalula

Mbalula

Cape Town – The ANC says the proposed VAT increase is the main point of contention in budget negotiations.

The finance minister’s budget plan includes a one percentage point VAT hike over two years, but the DA, the ANC’s largest GNU partner, refuses to support it without economic reforms.

ActionSA also opposes the increase.

ANC Secretary-General Fikile Mbalula emphasised the need for continued discussions with all parliamentary parties to secure budget approval and ensure effective governance under the power-sharing arrangement.

“We recognise the fact that the conditions under which we operate in are not the same as before. We are now operating under the conditions of power sharing, in what we characterise as the Government of National Unity, and there have been issues among GNU parties around the issue of VAT and as well as those who are outside and we need the budget to be passed in order for us to proceed to govern and stabilise the economy and ensure that the economy remains stable and pursue economic growth,” Mbalula said during a media briefing on Tuesday.

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