Godongwana: You can’t reject the budget, then implement it

His comments came after the Democratic Alliance (DA) and the Freedom Front Plus (FF+) broke ranks with the GNU by rejecting the budget in Parliament during Wednesday’s voting.  

The budget was passed with 194 votes from the ANC, IFP, Patriotic Alliance, and several smaller parties, while 182 MPs from the DA, EFF, MK Party and others voted against it.  

The budget vote has exposed growing divisions within the GNU, an alliance formed after the 2024 general elections to provide a stable governing coalition.

While the ANC expected its GNU partners to support the fiscal framework, tensions have flared over proposed tax increases, particularly the controversial 0.5% VAT hike.  

The DA has been one of the strongest critics of the VAT increase, arguing that it places an unfair burden on South Africans.

However, Godongwana insisted that the DA was actively involved in shaping the budget and even proposed some of the revenue measures they later opposed.  

Addressing Parliament, Godongwana drew a firm line, questioning how GNU members could reject the budget while expecting to play a role in implementing it.  

"You can’t vote against the budget and the next day you want to implement that budget. We have to draw the line," he said.  

The minister revealed that during a special cabinet meeting on February 19, a committee led by Deputy President Paul Mashatile and comprising ministers from the DA and the ANC, was tasked with finding solutions to balance the budget.  

"Among the five proposals generated in that meeting, it was the DA that proposed no tax relief, essentially allowing bracket creep to take effect.

“They also included increases in fuel tax and medical aid contributions," said Godongwana.  

He added that the final budget framework was a compromise between different proposals, yet the DA chose to reject it at the last minute.  

"The DA has been part of the process right through. They initially accepted the 0.5% VAT increase on the condition that the ANC make concessions on matters unrelated to the budget. They have been abusive in the whole process," he said.  

While the budget was passed, the internal rift within the GNU remains a major point of concern.

Godongwana indicated that the decision on how to handle the DA’s actions lies with President Cyril Ramaphosa and the ANC leadership.  

"That decision does not lie with me. It lies with the ANC, but I would find it difficult for the ANC to accept such behavior," he said.  

The DA, meanwhile, has defended its position, maintaining that it cannot support a budget that includes a VAT hike while South Africans are struggling with the rising cost of living.  

With growing fractures within the GNU, the next steps could have significant implications for the stability of the government, the way governs and the implementation of its fiscal framework in the months ahead.

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