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Mbalula said Tuesday's meeting would reflect how far negotiations have gone.
ANC Secretary General Fikile Mbalula. Picture: X / @ANCLimpopo
ANC secretary-general Fikile Mbalula says that while parties are fervently negotiating back and forth on the 2025 budget, he is confident that a deal with all partners of the government of national unity (GNU) can be reached.
The budget will be debated in a joint meeting of the Standing Committee on Finance and Select Committee on Finance in Parliament on Tuesday. Should the committees pass a resolution on the budget, it will proceed to the National Assembly for approval on Wednesday.
Speaking on the outcomes of the ANC’s national executive committee (NEC) meetings over the weekend, Mbalula said the committees meeting would reflect how far negotiations have gone.
“The portfolio committees meeting is underway, and it will be reflective of whether we are able to move forward together to adopt the framework of the budget, ahead of it going to Parliament tomorrow.”
He said negotiations with parties, both within and outside the GNU, ran overnight on Monday and into Tuesday.
While the DA cancelled a press briefing on the budget and leader John Steenhuisen issued a stern ultimatum, Mbalula said a deal may be close.
“I can tell you that there has been a back and forth between us and parties. We have a draft framework to engage all political parties in the GNU.
“Having spoken to everybody, we think now there is a basis for an agreement with those in the GNU, and even those beyond it.
“We are moving close to each other. That closeness will be consolidated into a budget. What that agreement entails will be important for oversight,” he predicted.
He said while a value-added tax (VAT) increase was the chief “thorn” in negotiations, a budget needed to be passed.
“We need the budget to be passed so we can proceed to govern, stabilise the economy, and pursue economic growth.”
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Mbalula said the ANC did not agree with the 2% VAT hike initially proposed but “ran out of options of what to do, except to cushion with a 0.5% intervention that is not permanent”.
“As our economic situation is perfected, the intervention will be withdrawn.”
He said the budget had already made progress with its latest draft and hinted at this possible future VAT reduction as part of proposals it had been negotiating.
It’s understood that another major GNU partner, the IFP, planned to reject the budget over the VAT hike. However, speaking at its 50th anniversary celebration recently, party president Velenkosini Hlabisa said it would accept the increase as a “temporary measure” until more suitable income streams become available.
He added that the DA had “a catalogue of issues, that shift from time to time”, while leaks of discussions made negotiations more difficult.
Added to this, he said, were parties wanting “agreements and guarantees” on issues outside of the initial discussions on the budget. This was likely a dig at the DA, which reportedly demanded the withdrawal of draft regulations for the NHI Fund and a Cabinet agreement on amendments to the Expropriation Act by April 17.
He said none of these should prevent government from passing the budget.
ALSO READ: NHI and VAT: What the DA demanded in budget talks
He said the party was not concerned by threats that the DA may walk away from the GNU if a deal is not struck between the two biggest parties in the coalition.
“We need to pass the budget for the sake of SA, but at the same time, we need to be alive and talk to each other. It is not about concessions but about what has been presented by the minister and does not address most of the concerns people have raised in their parties.
“We hope to find a solution with everyone and pass the budget”.
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