The National Assembly has officially approved the national budget, despite strong opposition from multiple parties. The contentious vote, held at the Nieuwmeester Dome in Cape Town on Thursday, saw 194 Members of Parliament (MPs) in favor, while 182 opposed the Standing Committee on Finance’s report on the fiscal framework and revenue proposals.
The adoption of the budget framework—backed by ActionSA, the African National Congress (ANC), and the Inkatha Freedom Party (IFP)—sets the country’s economic policies, revenue projections, and government spending limits in motion. However, the move has sparked heated political battles, particularly over the proposed VAT hike and tax bracket adjustments.
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Opposition Slams Budget Process
Democratic Alliance (DA), Economic Freedom Fighters (EFF), and uMkhonto weSizwe (MK) Party MPs strongly opposed the budget, arguing that it fails to address economic challenges while imposing an unnecessary burden on citizens.
DA MP Mark Burke ridiculed the approval process, calling it a “farce” given its timing on April Fool’s Day.
EFF MP Omphile Maotwe rejected the budget on legal grounds, warning that it violates the Money Bills Amendment Procedure Act by failing to align with the upcoming Appropriations Bill and Division of Revenue Bill.
Meanwhile, MK Party MP Des Van Rooyen accused National Treasury of ignoring expert advice from the Financial and Fiscal Commission (FFC) and the Parliamentary Budget Office, both of which warned against a VAT increase due to its impact on struggling South Africans.
ActionSA Defends Budget, Faces Backlash
One of the biggest surprises was ActionSA’s support for the fiscal framework, despite publicly opposing bracket creep and the VAT hike. Their stance has fueled speculation about their motives, with critics accusing the party of securing political favors within the Government of National Unity (GNU).
Burke questioned whether ActionSA had “sold out” their voters for media attention or future Cabinet roles, while the Freedom Front Plus (FF Plus) rejected the framework, saying Parliament has become a rubber stamp for the ANC’s economic policies.
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ActionSA parliamentary leader Athol Trollip defended the decision, arguing that rejecting the framework would delay the budget process indefinitely and disrupt government operations.
Divisions Within the GNU
Even within the GNU, disagreements surfaced over the budget framework. Patriotic Alliance (PA) leader Gayton McKenzie acknowledged that most parties opposed the initial 2% VAT increase, which was eventually reduced to 0.5% as a compromise.
However, McKenzie took a swipe at the DA, suggesting that if they were unhappy with the GNU’s direction, they should “Abahambe” (leave).
Finance Minister Enoch Godongwana defended the budget, highlighting that the VAT hike will generate R15.5 billion in revenue, with 76% of it paid by higher-income groups.
He also called out the DA for shifting positions, accusing them of initially advocating for no bracket creep, only to now oppose their own proposal.
“You cannot vote against a budget and then expect to be part of its implementation,” he warned, drawing a clear line in the sand for GNU members.
Legal Challenges Loom
With opposition parties warning of potential court challenges, the budget battle is far from over. United Democratic Movement (UDM) MP Nqabayomzi Kwankwa noted that revenue decisions must be backed by viable alternatives, while ACDP MP Steven Swart questioned whether Treasury had properly scrapped tax increases as claimed.
With the fiscal framework now adopted, the spotlight shifts to Treasury’s next steps—especially as they have 30 days to identify alternative revenue sources to replace some controversial measures.
The question remains: Will legal battles and political divisions derail the budget, or will the GNU push forward despite the opposition?
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