The DA will not support the budget finance minister Enoch Godongwana tabled before parliament on Wednesday.
The ANC’s largest government of national unity (GNU) partner has opposed a VAT increase and wants to seek other ways to plug the R60bn hole in the budget. Godongwana’s budget included a half percentage point increase in VAT, down from the Treasury’s initial bid for a two percentage point hike.
“We will not relent on the urgent need for a growth and jobs budget. This budget therefore does not have a majority support as it’s tabled in parliament. Since it’s been tabled without a majority, the ANC obviously needs to account for the consequences,” DA leader John Steenhuisen told Business Day on Wednesday.
“The DA’s door is open for solutions prior to the instruments being voted upon in the House, which will only commence from the 2nd of April, and we remain open to further discussions on that.”
This is the first time in three decades a finance minister is tabling a budget in parliament without certainty over it being eventually passed.
GNU partners met on Tuesday evening and had a crucial cabinet sitting early on Wednesday morning where Godongwana presented the budget to his colleagues, including ministers from the GNU.
Presidency spokesperson Vincent Magwenya on Wednesday said President Cyril Ramaphosa was doing everything possible to try to reach sufficient consensus.
“In the event there’s still no agreement on the budget, there is a process to be followed in parliament, and we are reasonably comfortable that any remaining issues can be resolved to ensure that the budget is passed,” he said on Wednesday.
“A careful balance has been struck and all the necessary compromises have been made on issues related to the budget. It’s a budget that certainly prioritises support and cushioning of poor households.”
The ANC and the DA are likely to go back to negotiating trade-offs over the budget after it is tabled by Godongwana ahead of the votes on the budget next month.
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