ANC Sidelines DA to Push Budget Through Amid GNU Tensions

The African National Congress (ANC) has secured majority approval in the Standing Committee on Finance to adopt the 2025 budget framework, despite strong opposition from the Democratic Alliance (DA) and Economic Freedom Fighters (EFF). The move raises questions about the future of the Government of National Unity (GNU).

Budget Battles and Backroom Deals

The ANC had been in tense negotiations with the DA ahead of the committee vote, hoping to find common ground. However, the talks failed as the ANC refused to concede to the DA’s demands for greater influence over economic policy.

Instead, the ANC turned to ActionSA, which proposed an alternative approach:

• Scrap the VAT hike planned over the next two years.

• Force National Treasury to review tax brackets and spending within 30 days.

• Shift revenue and expenditure adjustments to balance the budget.

Despite their earlier opposition, the ANC backed ActionSA’s proposal, allowing the framework to pass. The DA and EFF voted against it, calling the move incoherent and contradictory.

GNU at Risk as DA Cries Betrayal

The DA condemned ActionSA’s decision to vote alongside the ANC, calling it a “betrayal of the South African people”. DA MP Willie Aucamp accused ActionSA of handing the ANC a “blank cheque” to continue unchecked government spending.

The party also questioned the legitimacy of the GNU, arguing that the ANC had sought budget approval outside the coalition. This move, the DA says, could result in a restructuring of the government alliance.

“By adopting this budget without reforms, ActionSA has shut down the necessary spending review. This is extremely irresponsible,” said Aucamp.

EFF Slams “Backroom Deals”

The EFF rejected the budget approval as a violation of Parliamentary procedure, calling it an “illegal, incoherent process”. The party also dismissed the recommendation for National Treasury to find alternative revenue solutions, stating that “these requests hold no legislative weight.”

“The VAT hike has already been approved. The ANC’s request for Treasury to reconsider it is meaningless,” the EFF said in a statement.

What Happens Next?

With the budget framework approved by the committee, it now moves to the National Assembly on April 2 for a final decision. However, deep divisions remain:

• The DA and EFF vow to oppose the framework in Parliament.

• The ANC hints at restructuring the GNU in response to the budget fallout.

• National Treasury must now explore alternative revenue sources to offset the R28 billion shortfall.

With rising tensions and conflicting priorities, South Africa’s budget process is set to become a key political battleground in the weeks ahead.

{Source BusinessTech}

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