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Home » Uncertainty continues as budget standoff drags 
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Uncertainty continues as budget standoff drags 

Kgaogelo MagolegoBy Kgaogelo Magolego9 months agoNo Comments5 Views
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The future of South Africa’s coalition government termed the Government of National Unity once again hangs in the balance as the two biggest parties, the African National Congress and the Democratic Alliance disagree over the country’s budget.

The DA, the second largest party in South Africa and a key player in the GNU has vowed to not support the budget unless the ANC meets a number of demands it has put forward that include the scrapping of the Expropriation Act as well as other transformative pieces of legislation ( BELA Act and National Health Insurance) and the privatisation of the country’s harbours, conditions dismissed by the ANC as having nothing to do with the budget.

It now rest on a meeting that was held between President Cyril Ramaphosa and DA Leader John Steenhuisen to try and reach an agreement ahead of Wednesday’s budget debate during which political parties are expected to either adapt, reject or amend  the budget proposal tabled by finance minister Enoch Godongwana.

“The DA is fighting hard for a Budget that will create jobs. But the ANC wants to push ahead with a budget that doesn’t bring the economic growth we need to get South Africans into work. Government must budget to cut waste, and grow the economy,” said the former opposition on differences with the ANC.

The ANC in turn accused the DA of negotiating in bad faith by among others “shifting the goalposts” and employing media leaks.

Secretary General Fikile Mbalula briefed the media and confirmed the ANC was now talking to parties outside of the GNU in a desperate bid to get the budget passed hinting the DA that overplaying its hand may see the party booted out of the coalition

“Political scoring engagements will lead to the reconfiguration of the GNU. We have no intention of welding an axe, they will cut themselves out,” said Mbalula. 

Mbalula’s comments come as other parties are positioning themselves to jump in should the DA walk away.

Both the EFF and Action SA have indicated a willingness to join the coalition should the DA leave.

The Secretary General also the DA is mistaking the ANC’s sincerity in the negotiations to mean weakness.

“Since our formation in 1912, the ANC has always emphasized the importance of dialogue in resolving differences. However, while we remain engaged and committed to diplomacy and mutually beneficial relations, our humility should not be equated to weakness,” said Mbalula.

Action SA meanwhile said it had presented amendments to the budget that it said the party expected and could help pass the budget in the event the DA stuck to its guts.

The DA is being treated with suspicion after it was revealed last week that the party wrote to the ANC indicating willingness to support the budget proposal even with the 0.5 % vat increase if it ( ANC) agreed to scrap the Expropriation Act.

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