‘SA has no leadership’: Parties slam budget speech postponement over GNU dispute

Political parties have expressed their frustration after the highly anticipated budget speech was postponed due to ongoing disagreements within the government of national unity (GNU).

Finance Minister Enoch Godongwana was scheduled to deliver the first budget speech under the GNU on Wednesday at the Nieuwmeester Dome in Cape Town.

However, National Assembly Speaker Thoko Didiza announced at the start of proceedings that the tabling of the budget had been postponed to March.

The delay follows intense discussions within Cabinet over proposed tax increases, after President Cyril Ramaphosa called an emergency meeting.

It is believed some parties within the GNU opposed a proposed 2% increase in the value-added tax (VAT), which would raise it from 15% to 17%.

Political reactions to budget speech postponement

Reacting to the postponement, ANC secretary-general Fikile Mbalula said the government was being “undermined”.

“Nonetheless, it is worth postponing to address a fundamental question that will have a far-reaching implication for the poorest in the country, but at the same time for the citizens of South Africa so it is important that these matters be resolved,” Mbalula told the media outside the venue.

Agriculture Minister and Democratic Alliance (DA) leader John Steenhuisen confirmed that the proposed VAT increase was a key point of contention.

“It obviously was a very key point for me if I wear my hat as the leader of my party.

“It was a very clear position from my party that we couldn’t in good conscience support a 2% VAT increase given the current economic circumstances in South Africa,” he said.

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Steenhuisen stressed the need for “innovative” and “pro-growth” economic strategies to create jobs and tackle poverty.

“Those are the key determinants of the medium-term development plan and objectives of them and we need a budget that speaks to those key objectives,” he added.

Although he acknowledged that the postponement was not ideal, the DA leader deemed it necessary.

“I think it’s a healthy sign that there are now different voices around the table and that those voices must find each other now before a budget is tabled.

“It’s not just the my-way-or-the-highway situation and that other parties’ views and opinions need to be taken into consideration.”

Watch the debate below:

Heated parliamentary debate over budget speech delay

Inside the dome, MPs voiced their discontent over the delay.

EFF MP Julius Malema condemned the postponement as unprecedented, accusing the executive of prioritising party politics over national interests.

“You cannot come here and say confidently that the parties in the executive are not agreeing. What is that?” he said.

“The executive must come here and present the budget and this Parliament must decide whether we adopt that budget or not.”

Malema further declared that the government had collapsed.

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MK party chief whip Mzwanele Manyi echoed this sentiment, expressing shock over the last-minute cancellation.

“To have a day like this is a serious indication of the crisis that this country is facing. This country has got no leadership,” Manyi remarked.

However, Freedom Front Plus (FF Plus) MP Corne Mulder urged MPs to allow the executive more time to finalise discussions.

“If we are serious and if we are responsible, we will understand the circumstances and we know that some political parties will try to score cheap political points.”

New date set

United Democratic Movement (UDM) MP Nqabayomzi Kwankwa rejected the postponement, claiming that his party — despite being part of the GNU — was unaware of any prior discussions on the matter.

“We should not treat a proposal from the executive in the nature of a budget as fait accompli. It is only final after Parliament has approved it,” Kwankwa said.

Additionally, Build One South Africa (Bosa) leader Mmusi Maimane warned Parliament’s failure to adhere to proper timelines could lead to legal consequences.

“We must be given a firm date so that we can work the timetable consistent with law.

“Otherwise, the disagreement that took place today will end up in the court of law and we, as Parliament, will be held accountable for that,” Maimane said.

The budget is now set to be delivered on 12 March.

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