Budget talks with various parties ongoing, Mbalula confirms
ANC Secretary-General Fikile Mbalula says negotiations are ongoing to reach a deal that would ensure the passage of the national budget in Parliament.
Mbalula spoke to the media on Friday at the party’s four-day national executive committee meeting in Boksburg.
The proposed budget includes a 0.5 percentage point increase in VAT for the 2025/26 fiscal year, with a further 0.5 percentage point hike in 2026/27.
This adjustment aims to bolster government revenue amid rising public debt, but the proposed VAT hike has been met with stiff resistance from most political parties, including the DA, the ANC’s biggest partner in the government of national unity.
Mbalula emphasised that passing the budget is crucial for stabilising government operations in the coming year.
He noted that this issue has been a focal point in ongoing engagements with political parties within the GNU, including Finance Minister Enoch Godongwana.
"The thorny issue seems to be the 0.5% VAT increase, but nobody is providing alternatives for where the shortfall in the budget will come from,” Mbalula said.
“These are the fundamentals we need to address with others. We are not closing any doors to anyone; we need everybody to agree to get the budget over the line.
“The difficulty arises when people make declarations like 'take it or leave it.' We don’t agree with that.”
Meanwhile, Finance Minister Enoch Godongwana revealed that the DA had written a letter to President Cyril Ramaphosa agreeing to the 0.5% VAT increase on the condition that the ANC scrap the Expropriation Act.
Godongwana made these remarks while addressing a joint meeting of the Standing Committee on Finance and the Select Committee on Finance on Friday.
Mbalula was coy when asked about the letter.
“If such a letter exists, it means it is with the president. As the ANC, we have not received anything,” Mbalula said.
However, he acknowledged that budget discussions between the ANC and political parties, including the DA, have been ongoing at a parliamentary level.
“We accept that Parliament has the authority to amend the budget, but we would urge that the focus remains on how to make this budget more efficient,” he added.
ActionSA has formally informed the ANC that it will not back the proposed budget, primarily due to concerns over the planned VAT increase.
The ANC is also in discussions with other opposition parties, including the EFF, to garner the necessary support.
According to parliamentary procedures, lawmakers have until April 3 to approve the fiscal framework and related revenue proposals.
ALSO READ