With less than a week before Finance Minister Enoch Godongwana is set to deliver the rescheduled 2025 national budget, the Democratic Alliance (DA) has denied claims that an agreement has been reached on the country’s financial roadmap.
DA says there’s no deal on the table a week before Budget Speech
This follows a statement from the government on Monday, which suggested that after weeks of negotiations, the cabinet had provided Godongwana with multiple options to resolve the R60 billion budget shortfall.
According to the presidency, the minister now has a mandate to finalise the budget and present it to Parliament on Wednesday, 12 March 2025.
However, DA leader John Steenhuisen dismissed these claims, stating that negotiations were still ongoing and that no final agreement had been reached.
Writing on his official X page, he expressed hope that a resolution could still be found before the budget speech.
The DA remains firmly opposed to any increase in value-added tax (VAT), a key proposal that contributed to the unprecedented postponement of the budget speech on 19 February.
The party has instead called for alternative measures, such as efficiency improvements in government spending and reforms within the South African Revenue Service (SARS).
Tensions rise as DA warns against ANC-EFF ‘backdoor’ deal
On Sunday, DA MP and finance spokesperson Dr Mark Burke released a strongly worded statement criticising the African National Congress (ANC) for allegedly pushing a VAT increase despite opposition from coalition partners.
“It is a shame that the ANC is willing to risk South Africa’s economic stability in a desperate attempt to force a tone-deaf 0.75% VAT increase down the throats of South Africans,” Burke said.
He further accused the ANC of considering an alternative deal with the Economic Freedom Fighters (EFF) to push through the budget if the DA refused to support it.
“This is not responsible or collaborative governance—it is reckless and places further strain on the economy,” he added.
The DA maintains that the country does not have a revenue problem but rather a spending issue, citing wasteful expenditure and inefficiency as key areas where savings can be made.
The party has proposed suspending employer contributions to the Government Employees Pension Fund, a move that could reportedly save the treasury over R60 billion.
Despite the DA’s denials, a statement from the presidency on Monday insisted that cabinet had resolved the budget deadlock and given Godongwana the authority to make final decisions.
“The minister of finance and national treasury are now set to finalise the budget and table it before parliament on the 12th of March,” the statement read.
The budget speech delay, a first in South African history, was prompted by a lack of consensus within the Government of National Unity (GNU) regarding tax hikes.
While the ANC initially proposed a two percentage point VAT increase, backlash from coalition partners, particularly the DA, forced the government to reconsider.
With only a few days left before the rescheduled speech, uncertainty remains over whether the budget will be passed without further disputes.
