The African National Congress (ANC) and the Democratic Alliance (DA) have once again failed to reach an agreement on the budget speech tabled by Finance Minister Enoch Godongwana.
Last night, DA and ANC negotiators met for a final round of negotiations ahead of the parliamentary sitting this week.
The DA would accept the VAT increase of 0,5% and in return wanted the NHI, Bela and Expropriation Acts repealed.
However, the ANC refused.
In the second round of negotiations, the DA wanted to formulate the economic and International Relations policies for the country with the ANC but that was also rejected.
After last night’s meeting, DA leader John Steenhuisen posted on social media platforms this morning:
Time is almost up. Last night, the ANC refused to finalise an agreement on growth and spending reforms, imperilling the GNU. The DA will oppose the budget unless and until a written agreement is reached.
— John Steenhuisen MP (@jsteenhuisen) April 1, 2025
Meanwhile, the DA has insisted that there will be no VAT increase saying that its demands to the GNU partners regarding the pending budget is for the benefit of the people of South Africa.
The DA’s spokesperson on finance Mark Burke briefed the media outside Parliament earlier: “The DA has proposed at various junctures, and across two attempts at the budget, to propose alternatives that do not punish South Africans, with more tax. While we’ve been open-minded, and we’ve taken the posture of collaboration with our partner – the ANC has failed to agree to the reforms that we need to get the economy going.”
“If we get the economy going, for our revenue to increase over time, so that we don’t need to increase taxes. Because of this refusal from the ANC to agree to reasonable, politically neutral measures – I have now been mandated to go into this committee, and amend the fiscal framework – such that there will be no VAT increases,” adds Burke.
VIDEO | DA media briefing on the outcomes of budget negotiations:
