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MDNTV
You are at:Home » ANC Pushes for New Coalition Agreement Amid Budget Deadlock
BREAKING SA

ANC Pushes for New Coalition Agreement Amid Budget Deadlock

By MDNtv ReportersApril 11, 2025No Comments3 Mins Read
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The ANC is advocating for a formal, rules-based agreement to stabilize the coalition government and prevent future disputes, as negotiations with other political parties continue. The party is seeking a legally binding framework that would ensure support for parliamentary motions and avoid similar deadlocks moving forward.

 

The current standoff revolves around a proposed 0.5 percentage point VAT increase, which several parties, including the DA, oppose. The fiscal framework, a key part of the budget, was passed with the support of parties outside the government of national unity (GNU), such as ActionSA and Build One South Africa (Bosa), under the condition that alternatives to the VAT hike would be explored.

 

Top ANC leaders, including Gwede Mantashe, Fikile Mbalula, and Gwen Ramokgopa, have been meeting with other political parties in Johannesburg to resolve the deadlock. The ANC is pushing for a new, structured approach, emphasizing the need for a predictable, rules-based system to ensure smooth governance and avoid future surprises during votes.

 

The ANC has indicated to parties like ActionSA, Al Jama-ah, and the United Democratic Movement (UDM) that it wants to formalize agreements going forward. Mbalula stressed that the ANC is focused on creating a stable system for all parties, not just negotiating with the DA.

 

The ANC is set to meet with a DA delegation on April 12, followed by talks with the Freedom Front Plus on April 13. Despite disagreements over the VAT increase, the ANC remains committed to the GNU, but has signaled that it will push for a reconfiguration of the coalition to include more aligned parties.

 

Deputy President Paul Mashatile confirmed that while the GNU faces challenges, these do not signal its collapse, as the agreement involves multiple parties, not just the ANC and DA. The ANC is committed to prioritizing the country’s needs over political conflicts and aims for a more stable and predictable governance model.

 

The Freedom Front Plus has expressed its commitment to the GNU, as long as it continues to play a positive role. However, the party has warned that it will reconsider its position if non-GNU parties are used to bypass coalition support for key policies.

 

As the budget process continues, the ANC is focused on securing the necessary support for critical votes, including the Division of Revenue and Appropriation Bills, despite opposition from certain parties.

 

ANC Budget VAT
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