ANC secretary-general Fikile Mbalula said talks to reach a consensus on the budget issue were underway.
Image: Kamogelo Moichela
Despite existing tensions and divisions within the Government of National Unity (GNU) regarding the proposed budget, African National Congress (ANC) secretary-general Fikile Mbalula asserted that dialogues aimed at achieving a consensus were ongoing.
Mbalula was speaking on the sidelines on Friday at the party's four-day National Executive Committee (NEC) meeting in Boksburg, Ekurhuleni.
The proposed budget by Finance Minister Enoch Godongwana included a 0.5 percentage point increase in Value Added Tax (VAT) for the 2025/26 fiscal year, with a further 0.5 percentage point hike in 2026/27, making it a total of 1%.
Godongwana revealed that the DA has written a letter to President Cyril Ramaphosa, accepting the 0.5% Value Added Tax (VAT) but only if the ANC scraps the Expropriation Act.
However, Mbalula did not deny nor confirm that the DA had sent a letter to the Ramaphosa but said it would not be a surprise.
Mbalula said they will not confine discussions on the budget to the 0.5 percent VAT hike but are open to reexamining spending.
The ANC is seeking the support of opposition parties to ensure the budget is passed, this is after DA said it would not support the budget.
He mentioned that the NEC meeting will start with a political overview by the president and then move on to discuss the 2025 budget.
"The thorny issue seems to be the 0.5% VAT increase, but nobody is providing alternatives for where the shortfall in the budget will come from.
“These are the fundamentals we need to address with others. We are not closing any doors to anyone. We need everybody to agree to get the budget over the line.
“The difficulty arises when people make declarations like 'take it or leave it.' We don’t agree with that,” Mbalula said.
He further mentioned that the NEC discussed the way forward around the budget and continued engaging with other parties.
kamogelo.moichela@iol.co.za
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