The saga reflected political sniping and the inability of parties in the government of national unity to cooperate
Meetings are due in coming days and weeks to undo the damage after the finance minister caved on the tax increase
The Democratic Alliance has claimed credit for the about-turn by the treasury on the tax, saying its legal team had presented a strong case against the flawed parliamentary process used to adopt the fiscal framework
The finance ministry in a midnight announcement said the decision was informed by consultations with political parties
Counsel for the EFF told the high court that ActionSA was swindled in an unconstitutional manner to support a VAT hike.
Amending his proposal at this stage would force more borrowing, the minister warned in papers filed in response to the DA
The parties remain divided over an increase in VAT, which the DA says South Africans cannot afford
The stand-off between the two parties dates back to 19 February when DA leader John Steenhuisen made clear the party would not support a national budget that proposed a two percentage point increase in VAT
Both parties are mindful of the magnitude of a split as South Africa faces more economic turmoil
In its court papers filed on Thursday, the party said the fiscal framework that will lead to the tax increase was pushed through unprocedurally
The Democratic Alliance now plans to challenge the fiscal framework in court, further raising the tension around its future in the ruling coalition
The agreement came thanks to a lifeline ActionSA threw the ANC
The ANC has so far rejected conditions on which the DA would agree to support Finance Minister Enoch Godongwana’s 0.5 percentage point VAT increase for the coming fiscal year
The ANC secretary general said the ANC would not water it down to ‘Kiss the Boer’, nor would it prescribe to other parties what they must sing
The department says the reduction in teaching posts has increased the projected average teacher-to-learner ratio from 1:34.2 in 2024 to 1:36.7 this year
The recent drama over the budget spotlights the need to scrutinise our financial institutions, the treasury in particular
This is despite vacancy rates of 5% to 22% in government clinics and hospitals
A hostile response signals the start of the treasury’s struggle to avoid amendments to the 2025 budget
Budget approval hangs in the balance and resistance to it is set to play out in the legislature’s finance committees
The Democratic Alliance said the budget would struggle to pass in parliament, given the ANC’s lack of a majority
His party would have yielded if any increases were guaranteed to be temporary and tied to an overhaul of state spending patterns
The finance minister suggests that much of the opposition wrangling is part of a broader political battle
The minister conceded that the measure did not have support across the political spectrum
The recent termination of USAid to HIV/Aids and TB organisations in South Africa was a bone of contention in the 2025 budget
Members of the government of national unity and opposition parties have raised concerns that the ongoing impasse between the ANC and DA could trigger the need for fresh elections
The chairs of parliament’s finance committees say the country is on a fiscal cliff and the minister has to make difficult choices in his budget this week
Any VAT increase is probably off the table, leaving the treasury to look for revenue without bringing the coalition to the brink
The finance minister now has to choose from several options presented by a task team to draw up a budget
Analysts say the budget became a cliffhanger because it was written as though the ANC still governed on its own
The government is struggling to generate sufficient revenue development and deal with the country’s debt-to-GDP ratio
The DA has upped the ante in its demands for consultation on every point of government policy, although ANC ministers also opposed a planned VAT increase
The rand depreciated after the postponement of the budget speech to 12 March