Various political parties and civic organisations have reacted to Wednesday’s aborted budget speech in Parliament.
Described as shocking, embarrassing and unprecedented, the cancellation of the speech has apparently affected the economy negatively, while at grassroots level those depending on government grants are now anxious as they are expecting increases to their monthly handouts.
The bone of contention is said to be Minister of Finance Enoch Godongwana’s intention to increase Value Added Tax (VAT) by 2% and also because he had not consulted parties in the GNU regarding the increase, which many say would affect both rich and poor citizens of the country adversely; leading to crippling price hikes in food, petrol, electricity and other basic commodities.
It is widely believed that parties in the GNU had threatened to vote against the adoption of Godongwana’s budget and this would have led to a collapse of the GNU and a Constitutional crisis.
March 12 has been announced as the new date for the budget speech and it remains to be seen whether the GNU parties shall have forged common ground regarding the VAT matter.
Though the government hasn’t said it in so many words, it is safe to assume that the increase in VAT is necessitated by the government’s intention to amass funds to pluck the gap that was opened by the United States of America’s withdrawal of funds meant to fight HIV/ Aids.
Another reason for the intendent increase in VAT may be attributed to the urgent need to allocate more funding to the SANDF as it is apparently weak and can’t fulfill its peace-keeping mission in African countries like the DRC.
Yet another reason for the increase in VAT is obviously a desire to enable the government to fund the National Health Insurance scheme (NHI).
Some experts are of the opinion that though the aforesaid reasons may be genuine, the government must seek funds somewhere and not dabble in VAT in any way whatsoever.
The following are the views expressed by various political parties and civic organisations regarding the aborted budget speech:
1. DA LEADER JOHN STEENHUISEN: The postponement of the Minister of Finance Enoch Godongwana’s 2025/26 National Budget Speech is a victory for the people of South Africa as it prevents the implementation of a 2% VAT increase that would have broken the back of our economy.
The postponement is a result of failure by the ANC, and specifically Finance Minister Enoch Godongwana to engage meaningfully with alternative proposals tabled by the DA.
Following our defeat of the ANC’s plan to hike VAT, we will now fight with the same vigour to introduce a new budget that is anchored in growing the economy, rather than increasing taxes or debt.
This historic victory demonstrates the DA’s muscle within the Government of National Unity.
2.SANCO CHAIRPERSON ABRAM MASHISHI:
The South African National Civic Organisation (SANCO) in Gauteng expresses deep concern regarding the postponement of the budget speech, because this state of affairs has significant implications on our economy and the welfare of our citizens.
The postponement has caused the government approximately R1,3 million abd this is alarming as it highlights an urgent need for the state to be accountable to tax payers.
This postponement places immense pressure on our country; creating uncertainty in the market and potentially destabilising our economic recovery efforts.
Moreover, we strongly oppose the proposed 2% increase in VAT as this is troubling given that many of our people are struggling to make ends meet, especially within the ranks of the working class.
3.FF PLUS FINANCE SPOKESPERSON WOUTER WESSELS:
Parties in the Government of National Unity, such as the FF Plus have demonstrated that they won’t be bullied as they put their foot down regarding the hiking of VAT by two percentage points.
This proposed hike in VAT is an indication of the fiscal crisis in which the country funds itself, and the FF Plus will also oppose any legislation on this matter in the National Assembly.
The previous increase in VAT has already shown that VAT is not a goose that lays the golden egg in the midst of a bankrupt economy and impoverished community.
The truth of the matter is that the increase will further stagnate the economy and exacerbate the prevailing economic crisis.
The national budget should instead focus on cutting back needless government expenses, squandering on luxuries as well as government’s unsustainably high wage bill.
To make matters worse, America is tightening the money tap to South Africa in response to racist and draconian legislation such as the Expropriation Act.
4.AFRIFORUM CAMPAIGNS OFFICER LOUIS BOSHOFF:
AfriForum firmly believes that no budget should be approved that increases the tax burden on South African citizens.
It is clear that South African citizens are more responsible with their own money than the government is with taxpayer’s money.
AfriForum launches and supports various initiatives that help communities to fulfill their own needs and not be dependent on the state.
5. AZAPO PUBLICITY SECRETARY JABU RAKWENA:
The postponement of the budget speech is a fiasco that exposes the shortcomings of the so-called Government of National Unity.
There is absolutely no unity in that cabinet as the ideological differences are unbridgeable and there is too much ego and pettiness to outshine each other.
The rejection of the budget before it could even be presented speaks of a cabinet that is in disarray; the centre cannot hold, and AZAPO has warned against having a coalition with extremely opposed parties.
The ANC should have swallowed its pride and negotiated with like-minded groups in the formation of the GNU.
Alternatively, it should have forged ahead with the formation of a minority government.
Presently the DA is pumping it’s chest and riding the wave of being champions of the poor, but we know that this is cheap politicking.
AZAPO calls upon all black people to start looking at AZAPO as the only alternative for Black people and the advancement of the interests of the poor.
6.OPERATION DUDULA NATIONAL ORGANISER CHE SEROBEDI:
The postponement of the budget speech is unprecedented and as Operation Dudula we are demanding an explanation: do we have leadership in this country or is this a circus?
We are calling upon all progressive forces to stand as one and speak with one voice to demand a referendum in this country and declare a vote of no confidence in the present regime.
We are highly disappointed by the Executive to indulge in partisan politics instead of tabling the budget speech.
Inter-party politics must not derail the economy of the country and hinder budget allocations and services to South Africans.
We would like to put it on record that as Operation Dudula we don’t agree with the 2% VAT increase.
7.LASCA PRESIDENT TSHEPO MAHLANGU:
The postponement of the budget speech is a symptom of a toxic marriage of convenience.
Why did the powers that be wait until the 11th hour to cancel the tabling of the budget speech?
This development will have a negative impact on the upcoming State of the Province Address (SOPA) as well as the State of the City Address (SOCA) in all provinces and municipalities countrywide.
In as much as we agree that the the government must not increase VAT, we are also concerned about the myopic approach of the politicians who are in charge of drawing up the budget.
Where is the government hoping to get money to fund VAT increase from given the high unemployment rate in the country?
The ANC is used to resorting to hegemonic tendencies.
Although the postponement of the budget speech is provided for in terms of the Public Finances Management Act, the 11th hour postponement amounts to fruitless and wasteful expenditure that puts a dent on our already ailing economy.
The country is on auto pilot and therefore on the brink of collapse.
Just what is it that these politicians discuss at GNU meetings?
8. MK PARTY LEADER IN TSHWANE ABEL TAU:
We reject the notion that the DA is the saviour of the people of South Africa because they are part of the GNU, they are part of the cabinet and should not have waited for the grandstanding that they displayed in Parliament to put themselves in a better light.
They want to drive the narrative that they are the party that fighting for us; they are not fighting for us.
Poor people have been going through the worst, unemployment is high yet the private sector, who are mainly DA supporters, are still refusing to reinvest the trillions of rand that they have in reserve into our economy to create jobs, so the idea that the DA is our saviour is nonsensical.
It is good that the Ramaphosa administration has been made to realise that South Africans can’t afford another hike in VAT and the poor are going to be hit the hardest.
We wish that the budget would have been tabled in Parliament so that it would be rejected formally, which would imply rejection of the government in its entirety and we would therefore call for the installation of a government which would be people-centred.
Nevertheless we are happy that the budget as it is will never see the light of day.