Budget dispute is forcing ANC to consult – Will DA have more influence in GNU now?

Prof. Theo Neethling, a political analyst at the University of the Free State (UFS), says the DA, as a partner in the government of national unity (GNU), is now influential in developing government policy. He said the party showed this by ensuring the budget was not passed on Wednesday.

This comes after the DA and Minister of Finance Enoch Godongwana clashed on a proposed 2% VAT increase.

The disagreement led to the budget speech being postponed to 12 March to allow the GNU partners to find mutual ground.

‘ANC needs approval for budget’

Speaking to The Citizen on Thursday, Neethling said before the ANC lost its majority in parliament, the party’s finance ministers did not have to consult any other party on the budget.

However, with the formation of the GNU, parties such as the DA and others have to be consulted before the final presentation can be made in parliament.

“The DA intervened to delay the budget speech because of disagreements. The ANC needs approval in parliament for the budget to go through.

“They need the DA in parliament, and they will need them in the future as long as they are in the GNU,” he said.

Neethling said the DA also understands that their constituency expects them to act on their behalf in most major decisions.

“Recently, several controversial Bills were passed, and many in the DA were critical of party leader John Steenhuisen, saying he is not standing firm. However, yesterday, the DA drew the line,” he said.

Will this lead to the DA being more influential in policy decisions? Neethling said we will have to wait and see.

ALSO READ: Budget speech: ANC ministers also opposed VAT hike, Godongwana slams DA’s ‘identity crisis’

‘The GNU is functional’

He said he believed the GNU had acted in the country’s best interest by delaying the budget speech.

“There was a serious disagreement within Cabinet ranks, and in the end, all the GNU partners agreed that it would be best to postpone. This means that the ANC is now more sensitive to input.

“The GNU is functional because they realise that they have to work together for the country’s best interests,” he said.

He said the GNU introduced a new era of consultations.

“Previously, the finance minister would present the budget, and he would have his party’s support. It was never a problem to table the budget speech and get his party’s or parliament’s support.

“In the GNU, the minister has to share the core elements with the other parties,” he said.

Some opposition parties, such as the EFF and the MK party, said they believed the finance minister should have been allowed to deliver his budget speech despite disagreements on issues.

DA accused of playing politics

Meanwhile, Prof Ntsikelelo Breakfast, a political analyst from Nelson Mandela University (NMU), said political parties in the GNU should act in the country’s best interests first, not the interests of their parties.

The postponement of the budget speech has been described as unprecedented. It has never been postponed due to ideological clashes among cabinet members.

DA leader John Steenhuisen described the postponement of the budget speech as a “victory”.

However, Breakfast said he was concerned about such statements because it showed that party politics are involved.

“Why would they say such things? This means they believe the winner takes all, but at whose expense?”

“This is a blow to the GNU, and maybe they should refer this to their dispute resolution mechanism,” he said.

According to Breakfast, the fight over the budget is more ideological than practical.

He said the DA believes in fiscal discipline, while the ANC believes in increasing government expenditure as part of the National Democratic Revolution (NDR) goals.

Economist describes 2% VAT hike as regressive

Meanwhile, economist Makwe Masilela described the proposed 2% VAT increase as regressive and likely to impact the poor.

“It is regressive taxation and impacts everyone, but middle to low-income earners would be impacted worse than high-income earners. People are allowed to tap into their pension funds (two-pot system) because the government acknowledged that consumers are under strain,” he said.

Masilela described the budget as consumptive rather than productive. “It will increase our cost of living while the president promised to decrease it,” he said.

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