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The DA has decided to contest the fiscal framework's adoption in court.
DA leader John Steenhuisen at the Nieuwmeester Dome. Picture: Gallo Images
Opposition parties remain dissatisfied following the passing of the 2025 budget by the National Assembly on Wednesday, with the Democratic Alliance (DA) confirming its intention to pursue legal action.
Members of Parliament (MPs) debated and voted on the Standing Committee on Finance’s report concerning the fiscal framework and revenue proposals during a plenary session held at the Nieuwmeester Dome in Cape Town.
Fiscal framework adopted
The fiscal framework and revenue proposals outline South Africa’s economic policies, revenue projections, and government spending limits.
The African National Congress (ANC), ActionSA, Inkatha Freedom Party (IFP), Patriotic Alliance (PA), Build One South Africa (Bosa), United Democratic Movement (UDM), Rise Mzansi, GOOD, Al Jamah-ah, and Pan Africanist Congress of Azania (PAC) voted in favour of the budget.
ALSO READ: Budget 2025 passed with VAT increase while rand tanks
Meanwhile, the DA, Economic Freedom Fighters (EFF), uMkhonto weSizwe (MK) Party, Freedom Front Plus (FF Plus), African Transformation Movement (ATM), African Christian Democratic Party (ACDP), and United Africans Transformation (UAT) voted against it.
The adoption of the framework gives Finance Minister Enoch Godongwana and the National Treasury 30 days to propose alternative revenue sources to replace the planned value-added tax (VAT) increases and the decision not to adjust personal income tax brackets for inflation.
DA to challenge budget outcome
Taking to social media, DA leader John Steenhuisen confirmed that the party has decided to contest the budget’s adoption in court.
“The DA will file papers in the Western Cape High Court to challenge Parliament’s passing of the 2025/26 National Budget.”
“This VAT hike budget will make life more expensive for everyone, and the DA will go to court to fight for the interests of all South Africans,” Steenhuisen said on X, formerly Twitter.
In response, Sports, Arts and Culture Minister Gayton McKenzie urged the DA to exit the government of national unity (GNU).
DA national spokesperson Willie Aucamp told the media that the party would carefully consider its options before making a decision regarding its role in the GNU.
READ MORE: Budget vote fallout: Is the DA’s future in or out of GNU?
He stated that the DA’s Federal Executive (FedEx) would convene on Wednesday night or Thursday morning to deliberate on the matter.
“I don’t know whether there is a sentiment to leave or stay; our FedEx will decide on that.”
“I think it’s going to be very difficult to be passengers on the bus but have no say in where that bus is going.”
“But we as a party must now decide on that and make a decision. There will be robust debate on that,” Aucamp said.
EFF criticises budget process
EFF leader Julius Malema maintained that the Money Bills Amendment Procedure and Related Matters Amendment Act was not adhered to during the process.
“The finance committee had two roles to play: to adopt the fiscal framework and revenue proposals or to amend them, and neither of the two happened,” Malema said.
He further argued that the law does not mention making recommendations.
“Whatever recommendations that came with ActionSA is political manoeuvring; it’s political thuggerism to create an impression that something is going to happen when nothing is going to happen.”
READ MORE: You could pay extra VAT for a year, but forget about a refund if hike is rejected
Malema questioned what recourse Parliament has, given that the budget cannot be voted on twice.
“It’s done now; VAT is going to be increased.”
He suggested that this signalled the end of the GNU.
“We said this will not last for a year, and today everybody saw what we have been speaking about.”
Malema also confirmed that the EFF would consult its legal team regarding the matter.
ANC welcomes fiscal framework adoption
Meanwhile, ANC secretary-general Fikile Mbalula welcomed the adoption of the fiscal framework while taking a swipe at the DA.
“Doomsday Alliance was defeated today; we surge on with all patriots,” Mbalula said in a social media post.
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