DA Signals Willingness to Negotiate Budget as Fiscal Showdown with ANC Continues

The Democratic Alliance (DA) has confirmed that it is open to fresh budget negotiations with the African National Congress (ANC) following last week’s tense showdown in Parliament over the fiscal framework.

While Deputy President Paul Mashatile took a hard line against the DA for voting against the government’s proposed framework, DA spokesperson Willie Aucamp told Daily Maverick’s Ferial Haffajee that the party has never closed the door on talks and is committed to finding a solution that puts South Africans first.

“Cool heads must prevail. Every decision we make must be in the interest of each South African,” Aucamp said. “That interest is for the country, not for political parties.”

The ANC narrowly passed the fiscal framework with support from smaller parties in the Government of National Unity (GNU), after the DA rejected it on the grounds that it includes a controversial 0.5% VAT increase set to take effect on 1 May 2025.

While relations between the two largest GNU partners appeared to sour, Aucamp said internal discussions within the DA are ongoing, with its Federal Executive Council set to meet and determine the party’s next steps.

“We are willing to speak to the ANC to get a workable, proper Budget on the table,” he said.

Business Steps In

As political tensions mount, South Africa’s business sector has urged the ANC, DA, and IFP—the three biggest players in the GNU—to stay the course and work together. Aucamp said the DA took the business community’s message seriously.

“When the DA joined the GNU we immediately saw investor confidence grow. Markets reacted positively,” he said. “The businesspeople out there believe the government is a better place with the DA at the table.”

Legal Action and Alternatives to VAT Hike

The DA has also filed a legal challenge against the South African Revenue Service (SARS) and Finance Minister Enoch Godongwana, seeking to interdict the implementation of the VAT increase.

The party insists the 2025 Budget needs clearer commitments to economic growth and job creation. According to Aucamp, the DA has submitted a detailed document outlining immediate reform steps, targeted spending cuts, and sector-specific interventions that could replace the need for a VAT hike.

“The Budget Review may include general reform goals, but they lack specificity,” he explained. “We’ve tabled where cuts can be made and which reforms can start right away.”

Governing While Opposing?

Critics argue that the DA is trying to play both government and opposition, but Aucamp insists this dual role is part of the GNU’s oversight framework.

“Our MPs have a duty to perform oversight—even over our own ministers in the executive. The ANC isn’t used to that. But it’s necessary for accountability in a functioning democracy.”

While the ANC argues that rejecting the fiscal framework undermines governance, the DA maintains that the framework is not the final budget and that negotiation is still on the table. The crucial Division of Revenue and Appropriation Bills are still pending.

As the country inches closer to the implementation of the VAT hike, all eyes are on whether the two major players in the GNU can bridge their differences—for the economy, and for South Africans already burdened by rising costs.

{Source Daily Maverick}

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