ANC confident in passing fiscal framework despite DA standoff

ANC confident in passing fiscal framework despite DA standoff! The African National Congress (ANC) Chief Whip, Mdumiseni Ntuli, has expressed confidence that the party will secure enough support to pass the fiscal policy framework in Parliament. Despite ongoing tensions with the Democratic Alliance (DA), Ntuli believes that sufficient consensus has been reached among other political parties to approve the budget.

Deadlock Between ANC and DA on National Budget

While the ANC and other parties have reached agreements on key budgetary issues, a deadlock persists between the ANC and DA over certain growth and spending reforms.

The DA leader, John Steenhuisen, took to social media on Tuesday morning, just hours before Parliament’s Finance Committee meeting, to accuse the ANC of stalling on finalizing an agreement with his party. Steenhuisen claimed that this refusal was “imperiling the GNU”, referring to the Government of National Unity (GNU) in which both parties are key stakeholders.

Fiscal framework

ANC Confident in Securing Consensus

Despite the DA’s concerns, Ntuli stated that the ANC has successfully negotiated agreements with all other parties, except the DA. He expressed confidence that the fiscal policy framework would be approved in both the parliamentary portfolio committee on Tuesday and in the full parliamentary sitting on Wednesday.

“The ANC is absolutely confident that, having listened to all political parties in Parliament, attempted to persuade them and be persuaded by them, we now have a sufficient consensus to go through the portfolio committee this morning and agree on the fiscal framework.”

However, one outstanding issue remains—the proposed 0.5% VAT increase, which has been a major point of contention.

Ongoing Negotiations with the Freedom Front Plus

While the ANC has secured agreements with most political parties, negotiations with the Freedom Front Plus (FF Plus) were still ongoing as of Tuesday morning.

Ntuli emphasized that the ANC remains open to further dialogue but criticized the DA for choosing to engage through social media rather than formal negotiations.

“Our own view is that, and we have been telling the DA, it is not appropriate to engage with the ANC and all other political parties via the media and social networks. Come to a bilateral (meeting) as we did last night.”

Uncertainty Over the DA’s Role in the GNU

The Government of National Unity was formed to ensure collaboration between multiple parties, with the ANC and DA as the primary stakeholders. However, the DA’s opposition to the budget has raised questions about whether the party can remain in government while refusing to support its financial framework.

Ntuli highlighted this contradiction, stating:

“I do not know if the DA will remain part of the GNU when Parliament has passed a budget that they do not support. I have never seen it anywhere in the world where a component of any kind of coalition or a Government of National Unity decides to stand very firm and oppose a budget, and remain in government. I will see if that is going to happen in South Africa.”

This raises concerns about the stability of the GNU and whether the DA’s opposition could lead to deeper political divisions.

Ongoing Dialogue but No Breakthrough Yet

Both the ANC and DA have expressed optimism about their ongoing negotiations, but key differences persist, making a breakthrough uncertain.

With the budget vote looming, both parties are under pressure to find a compromise that will allow the fiscal framework to pass while maintaining political stability.

The Impact of the Budget Standoff

The continued impasse between the ANC and DA has cast a shadow over the country’s financial planning, with no clear resolution in sight.

The ANC’s ability to secure votes from other parties may allow them to push the budget through Parliament, but the long-term implications of the DA’s resistance remain uncertain.

As the deadline approaches, the nation watches closely to see whether the parties will find common ground or if the GNU will face its first major crisis.