Godongwana promises fiscal prudence in his new budget but the growth forecast may change
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
Amending his proposal at this stage would force more borrowing, the minister warned in papers filed in response to the DA
The Economic Freedom Fighters say the ANC only holds discussions with them during times of political crisis
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
Secretary general Fikile Mbalula challenged the Democratic Alliance to either support the government of national unity or make its exit official, as tension rises over the budget
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
But the presidency said on Wednesday the crunch vote on the fiscal framework was a test of the party’s commitment to the GNU
The agreement came thanks to a lifeline ActionSA threw the ANC
Godongwana warns that the outer limits of the budget are non-negotiable as a debt cliff loomed