President Cyril Ramaphosa and Democratic Alliance (DA) leader John Steenhuisen are meeting today as the deadline looms for the 2025/2026 budget to be voted on in Parliament on Wednesday.
The meeting is aimed at breaking a deadlock between the parties.
Taking to social media on Tuesday Morning, Steenhuisen indicated that the ANC and DA failed to reach a consensus, citing that the ANC refused to finalise an agreement on growth and spending reforms.
Earlier, the DA said that it would amend the proposed fiscal framework ensuring that there would be no VAT increases.
The proposed 0.5 percentage point VAT increase tabled by Finance Minister Enoch Godongwana has been a bone of contention for many political parties.
DA Finance spokesperson Mark Burke says, “The ANC has failed to agree to the reforms that we need to get the economy going. And if we get the economy going, for our revenue to increase over time so that we don’t need to increase taxes. And because of this refusal from the ANC to agree to reasonable, politically neutral measures, I have now been mandated to go into this and amend the fiscal framework such that there will be no VAT increases.”
Consensus
Meanwhile, marathon meetings have been taking place between various political parties in recent weeks in an effort to get a consensus on the budget. Various political parties weighed in on their stance, some rejecting the budget whilst others have thrown their weight behind it.
uMkhonto weSizwe (MK) Party’s Spokesperson Nhlamulo Ndhlela says, “uMkhonto weSizwe as a pro-poor party rejects and will continue to reject any VAT increase, incremental or not. Instead, we say as mkonto wesizwe that there should be an introduction of the wealth tax, there should be an increase in corporate tax, there should be a review and even criminal charges brought against those that led to the 120 billion rand of fruitless and wasteful expenditure in government.”
Inkatha Freedom Party (IFP) president Velenkosini Hlabisa says, “The IFP does not support the ANC on VAT. We are following our logic. When you look at the budget, I said it in an address there, the economy of South Africa has been stagnant for many years. There is no way for a quick growth of the economy. If you want to have a resource, it’s you either go and borrow. If you go and borrow, you’re paying generations. The IFP was of the view that because you are going to spend more money on construction work and infrastructure, you will create job opportunities.”
Patriotic Alliance’s deputy president Kenny Kunene says, “The ministers were also consulted on the budgets for their departments, therefore it’s a GNU budget, it’s not an ANC budget and as the Patriotic Alliance, we will be supporting the budget. Members of Parliament, including our cabinet member, Minister Gayton McKenzie, will all support the budget fully so that we can start with service delivery for the people of South Africa. ”
ActionSA’s Alan Beesley says, “Since the budget was first presented, ActionSA has remained consistent in our view that we would not accept any tax increases. South Africans are hard-pressed and should not have to pay more for the corruption, incompetence, and wastages that are pervasive within government entities and government departments. ActionSA concluded the meeting with the ANC on the understanding that the ANC would support no tax increases. However, we do recognise that it is the ANC’s prerogative to conclude a deal with other parties within or outside the GNU. Action SA remains resolute. We will not accept any tax increases.”
With much riding on the passing of the 2025/2026 budget, the hope is that political parties will reach an agreement on the budget in the interest of ordinary South Africans.
