Written by Lisa Murimi
South Africa is navigating uncharted waters after Finance Minister Enoch Godongwana’s national budget sparked deep divisions within the fragile coalition government, delaying its presentation for a month.
The budget, which includes controversial tax hikes, has been rejected by key coalition partners, especially the Democratic Alliance (DA), threatening the government’s ability to pass it.
The African National Congress (ANC) formed a government of national unity (GNU) after losing its parliamentary majority last year.
However, the DA’s opposition to the proposed increase in Value Added Tax (VAT) from 15% to 17% has left the ANC struggling to gather the necessary support.
The VAT increase, initially planned as a single rise, has been revised to 16% over two years in an attempt to placate critics.
Godongwana argues that the tax hikes are essential to address critical funding gaps in health, education, and security.
However, his proposals have drawn fierce criticism, particularly from opposition parties like the Economic Freedom Fighters (EFF), which argue that the tax burden will disproportionately impact the poor.
With the ANC unable to rely solely on its partners, the role of parliament is now crucial. Analysts warn that failure to resolve the impasse could lead to the collapse of the coalition government and undermine President Cyril Ramaphosa’s leadership.
