President Cyril Ramaphosa. Photo: Brenton Geach/Gallo Images
President Cyril Ramaphosa wants the Democratic Alliance to (DA) remain in his ruling 10-party coalition but views whether the party votes in favour of the fiscal framework as a test of its commitment to the partnership, his office said on Wednesday.
“The president remains committed to keeping the GNU [government of national unity] together and, in fact, with the DA’s continued participation,” his spokesman Vincent Magwenya said on Wednesday, shortly before MPs were due to vote on the framework in the National Assembly.
“What the DA does during the budget vote today will determine its own commitment, not only to the GNU, but to the people of South Africa.”
Late on Tuesday, parliament’s standing and select committees on finance adopted a report recommending that the chamber approve the fiscal framework, but with a recommendation that Finance Minister Enoch Godongwana endeavour over the next 30 days to find an alternative to a staggered 1 percentage point VAT increase. The first 0.5 percentage point increase is due to take effect on 1 May.
This way around the ongoing coalition impasse on the 2025 budget was proposed by ActionSA, which is not a member of the governing coalition.
The DA argued for the framework to be explicitly amended to replace the tax increase with a reduction in expenditure. It has vowed not to support the budget in its current form, after the ANC rejected the political concessions it sought in return for supporting it.
The DA was due to receive a warning from ANC chief whip Mdumiseni Ntuli before the vote to fall in line and vote in favour of the framework. DA MPs declined to say how the party would respond to the instruction or whether they still held a mandate from party leader John Steenhuisen to vote against the fiscal framework.
Magwenya said: “We remain hopeful that sobriety amongst DA MPs about the stability of our economy will prevail.”
The risk to the future of the 10-month-old coalition in its current form and the extent of the pressure the DA faces from the ANC were underscored by leaked remarks Ramaphosa made to his party’s caucus on Tuesday night.
He suggested that ANC’s biggest coalition partner would, by implication, be leading itself out of the partnership if it failed to vote for the fiscal and revenue proposals.
Ramaphosa was not aware that he was being recorded while addressing party colleagues.
The presidency said the remarks came in the context of a political discussion with colleagues and did not detract from his commitment to the 10-month-old coalition.
“Notwithstanding a few bumps along the way, the president has enjoyed working with the ministers from the DA and has cultivated an excellent working and professional relationship with them,” Magwenya said.
He added that Ramaphosa had particular appreciation for the work of the ministers of home affairs and public works.
“The president has found the work that is led by ministers [Leon] Schreiber and [Dean] Macpherson in their respective departments commendable.”
He went on to Steenhuisen’s work to transform the agricultural sector and said Ramaphosa and Basic Education Minister Siviwe Gwarube had developed a better understanding of each other’s objectives after butting heads over the Basic Education Amendment Laws Act.
“So, all in all, it’s been a fantastic partnership if we park aside the few negative bits that have dominated the headlines,” Magwenya said.
“That’s why the president remains hopeful that the DA will look beyond narrow constituency interests and place the country first and foremost in its decision-making.”