BUDGET SHOWDOWN: GNU FACES CRUCIAL TEST IN PARLIAMENT

Wed 02 April 2025:

As the National Assembly gathers for a high-stakes vote on South Africa’s 2025 budget, tensions within the Government of National Unity (GNU) have reached boiling point. The controversial budget vote, which could determine the fate of the coalition government, has become a flashpoint for political divisions and the future of service delivery in the country.

The budget vote, tabled by Finance Minister Enoch Godongwana, has ignited fierce debate over proposed tax increases, fiscal policy direction, and the legitimacy of the GNU itself. The African National Congress (ANC), lacking an outright majority, has turned to smaller parties like ActionSA to secure the 201 votes needed to pass the budget in the 400-seat National Assembly.

ActionSA emerged as a pivotal player after the ANC’s negotiations with its main coalition partner, the Democratic Alliance (DA), collapsed. In exchange for its support, ActionSA demanded the scrapping of a proposed VAT increase and a review of personal income tax bracket adjustments.

“It’s been purely about the Budget at the moment,” said Alan Beesley, ActionSA’s representative on the Standing Committee on Finance, distancing the party from formally joining the GNU.

Political analyst Dr Ntsikelelo Breakfast warned of the broader implications: “If the budget doesn’t get passed, it means that the plans of Government to render services will be put on hold … For Government to achieve its intended objectives in terms of the developmental trajectory of the country, the budget has to be passed.”

The Economic Freedom Fighters (EFF), meanwhile, have threatened legal action, calling Tuesday’s finance committee proceedings “procedurally defective.” EFF MP Omphile Maotwe claimed the ANC was “hiding behind the GNU” to “sell out our people,” and rejected ActionSA’s intervention as illegitimate.

__________________________________________________________________________

https://whatsapp.com/channel/0029VaAtNxX8fewmiFmN7N22

__________________________________________________________________________

DA, ANC Rift Deepens as Budget Vote Proceeds

DA MP Dr Mark Burke described the budget process as a “farcical day, for a farcical process, leading to a farcical report,” accusing the ANC of undermining parliamentary procedure. He cited the Zondo Commission’s findings against committee chair Joe Maswanganyi as further evidence of compromised oversight.

The DA’s refusal to back the budget has sparked talk of a possible GNU collapse. ANC Secretary-General Fikile Mbalula warned that if the ANC passes the budget without the DA, the coalition could be “reconfigured.” Gayton McKenzie of the Patriotic Alliance added fuel to the fire, saying bluntly, “DA can go,” and praising the ANC’s compromise to reduce the VAT hike from 2% to 0.5%.

Despite the acrimony, some parties like Rise Mzansi and BOSA have opted to support the budget framework conditionally, hoping to amend it during the appropriations phase. “Let’s use the next while to find alternative revenue mechanisms,” said BOSA leader Mmusi Maimane.

The unfolding crisis has also exposed deeper structural issues in South Africa’s political framework. Dr Breakfast highlighted how the Constitution was not optimally designed for coalition politics:

“The founding fathers and mothers of the Constitution did not anticipate a situation like this, whereby one-party dominance will be a thing of the past. The Constitution, as it stands, only gives 14 days to political parties to form a government. When you draw from international best practices, normally negotiations run for a longer period.”

As the budget vote continues, all eyes remain fixed on Parliament. Whether the ANC can cobble together enough support — or whether South Africa is headed for a fiscal and political cliff — will be determined in the hours to come.

The outcome of today’s budget vote may not only shape the financial future of the country but also determine the survival of the GNU.