by DION HENRICK
Western Cape Bureau
CAPE TOWN, (CAJ News) – THE cancellation of the Budget Speech, for the first time in almost 31 years of self-rule, highlights the cracks within the coalition at the helm of South Africa.
It is the latest turbulence to derail the administration, also known as the government of national unity (GNU).
All was set for finance minister, Enoch Godongwana, to present the budget in Parliament in Cape Town on Wednesday afternoon, but the exercise was cancelled at the last minute.
This is after disagreements between the main parties in the GNU- African National Congress (ANC) and Democratic Alliance (DA) – over tax increases.
ANC, dislodged from power after 30 years of dominance last year, is advocating for an increase in value added tax (VAT) and has faced pushback from DA, whose position is boosted by the rejection of an increase in VAT by other opposition parties.
Minister Godongwana, of the ANC, was scheduled to outline the financial, economic, and social commitments that the government would prioritise in its planned expenditure this year.
He said the cabinet considered that although the tabling of the 2025 budget was scheduled for release on Wednesday, a postponement was needed to allow for further deliberations to take place on the budget.
March 12 has been set as the new date.
“Cabinet is united in the view that the budget must strike a balance between the interests of the public, economic growth and fiscal sustainability,” Godongwana said in a media briefing.
The coalition government has been fraught with differences between the ANC and DA on economic and foreign policy, among others, since it came to power after the May 2024 polls.
The DA has resisted attempts by the government to implement a 2-percent VAT increase.
John Steenhuisen, leader of the DA and agriculture minister in the coalition government, described the postponement of the 2025/26 National Budget Speech as a victory for the people of South Africa, as it prevented the implementation of what it believes would have broken the back of the economy.
“Following our defeats of the ANC’s plan to hike VAT, we will now fight with the same vigour to introduce a new budget that is anchored in growing the economy, rather than increasing taxes or debt,” Steenhuisen said.
Markets were shaken at the postponement of ten budget tabulations, with the volatile rand sliding from 18,58 to 18,33 to the United States dollar by Wednesday.
The opposition Economic Freedom Fighters (EFF) was outraged as the sitting of Parliament to listen to the budget tabulation came to naught, after Speaker of Parliament, Thoko Didiza, announced the deferment.
“The GNU, particularly the right-wing racist DA, is now attempting to spin its own failure as an opportunity to craft a ‘pro-growth budget’,” EFF stated.
The opposition party said this was “laughable, historical and outright deceitful.”
The biggest opposition in Parliament, uMkhonto weSizwe (MK) of former president, Jacob Zuma, argues this cements its position that the DA, not the ANC, leads the coalition government.
“The ANC is merely a puppet of the DA and the white capitalist system it (DA) represents,” MK stated.
It has called on the Auditor-General and hinted at a legal challenge to investigate fruitless expenditure on parliamentary sitting that came to naught.
ANC has justified the deferment of the budget tabulation.
“The Minister of Finance has done the right thing by engaging everyone,” said Fikile Mbalula, party secretary-general.
“This postponement is the result of that engagement. The government must take everyone into confidence regarding the reasons for the postponement,” Mbalula said.
– CAJ News