By Daanyaal Matthews
The budget speech continues to dominate headlines across the Republic as discussions intensify over a potential 0.5% increase in VAT this year, with the possibility of another hike next year. While parties such as the UDM have reluctantly accepted the increase, their counterparts in the Government of National Unity—particularly the DA—have openly challenged the ANC’s proposed policy shifts. As a result, the future of the budget speech remains uncertain.
The DA has firmly stated that it will not approve the budget without amendments to several key pieces of legislation, including the BELA Act, the Expropriation Act, and the NHI Act.
The ANC has criticized this approach, with some labelling it as political hostage-taking. ANC Secretary-General Fikile Mbalula has strongly condemned the tactic, while the DA remains resolute, arguing that Finance Minister Enoch Godongwana’s proposed budget is both “anti-transformative” and “anti-poor.”
Speaking on VOC NewsBeat, Professor Dirk Kotze, a lecturer in the Department of Political Sciences at the University of South Africa, emphasized the urgency of resolving the deadlock, given the budget’s critical role in governance.
“Wherever in the world, the public sector, public activities, the programs of government, and the policies that must be implemented—all of them depend on the budget, and with no budget, things come to a standstill,” stressed the political analyst.
Listen to the full interview here:
