The Democratic Alliance (DA) has announced that it will take legal action following Parliament’s approval of the 2025 national budget.
DA blasts budget vote outcome in scathing statement
In a sharply worded statement, party leader John Steenhuisen said the DA would file papers in the Western Cape High Court, arguing that the budget process was flawed and unfair to South Africans.
At the heart of the DA’s objection is the approved increase in VAT — or Value-Added Tax — by 0.5%. VAT is a tax added to the price of most goods and services, meaning that people will now pay more when buying everyday items, except for certain basic food items which are VAT-free.
Steenhuisen criticised smaller parties like ActionSA and the IFP for siding with the ANC, accusing them of helping to “make life more expensive for South Africans.”
He also claimed that the way the budget was passed in Parliament broke the rules and said the DA would fight the matter in court.
“The ANC is out of touch with the people. If they bought their own groceries or filled their own tanks, they would know how expensive life already is,” Steenhuisen said.
The DA is challenging two key parts of the process: first, that Parliament’s finance committee didn’t follow the proper steps when approving the budget; and second, that some budget decisions were made without enough involvement from MPs.
The DA believes this is not only wrong but also against the Constitution.
What the budget vote outcome means for the average South African
Parliament officially approved the 2025 budget plan — known as the fiscal framework — by a narrow margin of 194 votes to 182. This means the government can now begin rolling out its financial plans for the year, including collecting taxes and spending on public services.
Here’s what it means in simple terms:
- VAT will go up by 0.5%. This is a tax on most things people buy. The increase means you will now pay more for goods and services — even small purchases could cost slightly more.
- The R350 grant will continue for another year. This grant helps unemployed people, but it’s still unclear if it will become permanent.
- Social grants will go up slightly, like the old age and child support grants. However, many say these increases aren’t enough to match rising living costs.
- Government debt remains high. A large part of the budget will go to paying back money the government has borrowed, rather than being used for services.
The vote has created tension within the Government of National Unity (GNU), especially between the ANC and the DA. The DA, despite being the ANC’s largest coalition partner, voted against the budget and accused the ANC of ignoring its concerns.
Even though the budget has passed, the fallout could lead to more conflict within the government.
It also means that while services like healthcare and education can now be funded, everyday South Africans might feel extra pressure on their wallets due to the VAT increase.
The DA’s court case could delay or change parts of the budget if the court agrees that the process was flawed.
For now, the government will proceed with its financial plans as approved.
