Rifts are emerging within the ANC as some of its members use last month’s budget impasse to question the future of the government of national unity (GNU) and push for the removal of the Democratic Alliance (DA) from the coalition.
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The ANC on Sunday declined to comment on reports that its parliamentary caucus has called for the DA to be expelled from the GNU.
The DA — the second-largest party in the unity government — came under fire from within ANC ranks after it voted against the budget tabled by Finance Minister Enoch Godongwana and went to the high court to have the framework set aside.
However, most political parties, including several within the GNU, also opposed the proposed VAT increase.
They backed the broader fiscal framework on the condition that alternatives to the VAT hike be explored.
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Despite national leaders of both the ANC and the DA agreeing to fresh talks, and a revised budget now scheduled for presentation on 22 May, several ANC MPs reportedly used a caucus meeting last Friday to call for the DA to be excluded from the GNU.
ANC national spokesperson Mahlengi Bhengu-Motsiri would not confirm or deny the reports.
The ANC doesn’t comment on leaks.
Although the ANC caucus plays a significant role in shaping legislative positions, it does not have the authority to decide on the composition of the GNU.
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That responsibility lies with the party’s national executive committee (NEC), its highest decision-making body between conferences.
The DA, which objected to Godongwana’s initial proposal to raise VAT by 0,5 percentage points, has taken the matter to court.
Godongwana later withdrew the proposal and acknowledged the need for broader consultation.
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National Treasury said in a statement:
While the postponement of the budget’s passage is not ideal, the circumstances leading to this decision have highlighted the importance of meaningful engagement on fiscal matters.
“This situation has provided a valuable opportunity for all stakeholders — citizens, members of Parliament, labour organisations, and civil society — to thoroughly engage with the complex challenge of achieving fiscal sustainability while promoting economic growth and protecting essential public services within very limited resources.”
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Consultations on the revised budget are expected to begin in the coming days.
The revised budget will adhere to all established technical processes and consultations as set out in the Money Bills and Related Matters Act.
“This includes formal consultations with the Financial and Fiscal Commission, thorough consultations with all political parties within the Government of National Unity as well as Cabinet approval before presentation to Parliament,” Treasury added.