SACP says Finance Minister Enoch Godongwana never consulted alliance partners on Budget

SACP says Finance Minister Enoch Godongwana never consulted alliance partners on Budget! The South African Communist Party (SACP) has expressed dissatisfaction with its exclusion from discussions surrounding the National Budget, despite being part of the ANC-led tripartite alliance with the African National Congress (ANC) and the Congress of South African Trade Unions (Cosatu). The party’s concerns were raised following the postponement of Finance Minister Enoch Godongwana’s budget speech, which was initially scheduled for Wednesday but delayed due to disagreements within the Government of National Unity (GNU).

SACP Criticizes Lack of Inclusion

Speaking on Newzroom Afrika during a panel discussion, SACP spokesperson Alex Mashilo criticized the lack of consultation with the SACP regarding the National Budget. He noted that while extensive negotiations had reportedly taken place between the ANC and the Democratic Alliance (DA), the SACP and other alliance partners were left out.

“The SACP is in alliance with the ANC and Cosatu. There is a problem there. You cannot have the type of consultation we have read in the media between the ANC, or the minister of finance and the DA, and there has been no consultation within our alliance,” said Mashilo.

Mashilo further argued that relying on the DA’s support for budget proposals could undermine minority parties within the GNU. He warned that the DA was proving to be “unreliable” in supporting any policy agenda that the ANC might have expected them to endorse.

VAT Proposal Sparks Controversy

The postponement of the budget speech was reportedly triggered by disagreements over a proposed 2% increase in Value-Added Tax (VAT), which would raise the VAT rate to 17%. The proposal, seen as politically sensitive, sparked strong opposition from the DA and some members of the ANC.

Finance Minister Godongwana explained that the Cabinet faced significant fiscal challenges and needed to find ways to secure additional funding. He outlined three potential options: increasing government borrowings (for which there was little room), further spending cuts, or raising taxes. The Cabinet must decide how best to balance these competing options before the new budget date of March 12.

Cabinet Defends Decision to Postpone

Minister in the Presidency Khumbudzo Ntshaveni dismissed claims that the DA had single-handedly forced the budget’s postponement. She emphasized that the delay was a “collective decision by the Cabinet” and was not due to opposition from any one political party.

“It is completely wrong to think that the DA forced the postponement,” Ntshaveni said. “Even ANC ministers opposed the proposed increase.”

Several political parties claimed that they were only informed of the proposed tax increases on the morning of the scheduled budget presentation. However, Godongwana refuted this, stating that he had warned parties two weeks earlier that tax hikes were imminent, though he had not disclosed the exact details of the VAT increase at the time.

DA’s Opposition and “Anti-Worker” Allegations

The DA has taken a leading stance in opposing the proposed VAT increase. However, Mashilo accused the DA of promoting what he described as an “anti-worker” agenda. He hinted at potential confrontation in the coming weeks, suggesting that the DA’s economic policies were designed to disadvantage South African workers.

“The DA is going to be caught with serious surprises. Its macro-economic policies and budget expectations are anti-workers,” Mashilo said. He also alleged that the DA had “unleashed a machinery against themselves which they are about to see in the coming weeks.”

Looking Ahead

As the government continues to negotiate over the National Budget, tensions between political parties remain high. The Cabinet’s decision-making process and any changes to the proposed VAT increase will likely be scrutinized by both the public and political stakeholders in the weeks leading up to the revised budget date. How the ANC, SACP, and other parties navigate these negotiations will shape the country’s fiscal and political landscape for the foreseeable future.