EFF’s Sinawo Thambo calls for Finance Minister Godongwana’s resignation
Economic Freedom Fighters (EFF) spokesperson Sinawo Thambo has called for the immediate resignation of Finance Minister Enoch Godongwana, accusing him of throwing South Africa’s fiscal policy into disarray following the collapse of key budget proposals.
Thambo’s comments follow the withdrawal of the Division of Revenue Bill and the Appropriations Bill two cornerstone pieces of legislation underpinning the national budget.
The move came after the government reversed its plan to implement a contentious 0.5% increase in value-added tax (VAT), a central element of the Treasury’s Fiscal Framework.
According to Thambo, the withdrawal of the bills amounts to the scrapping of the entire budget. He criticized Godongwana for failing to present a viable alternative, stating, “What happens to his fiscal anchor and his entire fiscal strategy? Do we get a new fiscal framework? If so, how?”
The original Fiscal Framework aimed to deliver a primary budget surplus and restore investor confidence, largely relying on increased VAT revenue and limited adjustments to personal income tax brackets. With the VAT increase abandoned, Treasury now faces a R75 billion shortfall, which Godongwana has said will be addressed through spending cuts.
The EFF, which has consistently opposed the VAT hike, has received public praise for its efforts to block the policy. However, Thambo’s latest remarks highlight deeper concerns about the government’s ability to manage the nation’s finances moving forward.
Critics argue that Godongwana’s failure to offer a clear plan in the wake of the policy reversal has cast doubt on his leadership, raising uncertainty about South Africa’s fiscal direction in the months ahead.