ANC’s budget battle proves its power is waning

The last thing that the ANC wants to be reminded of is how it got here: unable to pass a budget on its own.

Except for the advent of democracy in 1994, the postponement of the budget speech last week is perhaps the biggest milestone in the development of South Africa’s democracy.

Of course, the world economic markets would have applauded the seamless presentation of a budget of this coalition government of national unity (GNU), but doing things to impress the world would have been detrimental to this country’s people, especially the poor.

But back to how the ANC found itself unable to garner enough support within the GNU to allow Finance Minister Enoch Godongwana to force a VAT increase from 15% to 17%: this was ANC arrogance chickens coming home to roost.

Remember the height of ANC arrogance that had its former president, now enemy number one Jacob Zuma declaring: “The ANC will rule this country until Jesus comes back?”

It was that same arrogance that saw the organisation contesting the 2016 local government elections with the slogan “Asinavalo”, literally, we are not afraid, because there is no chance we’ll ever lose an election.

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To those still insisting the ANC is in power and all other parties are there to rubber-stamp its decisions, the postponement of the budget presentation is what an election defeat feels like.

The markets and the ever-volatile rand may have been disapproved, but democracy worked for the ordinary South African last week.

Two major things were averted: subjecting the poor to a further erosion of the little buying power that still allows them to put the most basic food on the table, and the further entrenchment of the mistaken belief that the ANC did not lose power in the May general election.

The ANC did lose the election and the country is better off for it.

There will be no 100m-long neon light billboard the size of that abandoned Nathi Nhleko SA flag to announce that the country is going broke.

The biggest sign of any country going broke is when the government wants to tax its poorest of the poor to death.

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Follow the logic: South Africa’s poorest citizens receive a grant to make ends meet.

The Covid relief grant comes from taxes.

The same social relief grant would now be subject to a 17% VAT when those poor people buy food, electricity and water.

In short, the government would be taxing the poor to provide social grants to the poor.

That is the biggest red flag telling the country that it is broke.

The situation is not hopeless, yet.

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Before the government taxes everyone to death, it can swallow the bitter pill and accept that a bloated civil service is not sustainable.

The time to mollycoddle public sector unions and avoid taking the hard decisions to drastically cut down the 1.3 million civil servant figure is over. The government cannot remain the country’s biggest employer if doing that increases the burden on the poor.

Life is hard enough as it is below the poverty line, but for those same poor people to become employers of a bloated civil service makes no sense.

Also, how about Godongwana calling Sars commissioner Edward Kieswetter’s bluff that he can collect more taxes without increasing takes?

Give the revenue service the resources it needs to ensure that the tax net gets every possible cent from those who should be paying, but are not. There is nothing to lose for the ANC, but arrogance in listening to suggestions that lightens the burden on the poor.