Prof. André Duvenhage warned delays in reaching common ground – particularly between the ANC and the DA – could have significant consequences for both the budget and political stability.

At the centre of the debate is Finance Minister Enoch Godongwana’s proposed 2 percentage points VAT increase. The Sunday Times reports Godongwana remains firm on introducing a VAT hike, though at a lower rate than the one that derailed his spending plans in February.

NWU Political Analyst Andre Duvenhage. Photo: Kekeletso Mosebetsi.

Several political parties, including the DA, EFF, and MKP, have rejected the proposed increase. The initial budget speech, originally scheduled for February, was postponed due to this lack of agreement.

Duvenhage highlighted the potential consequences if consensus is not reached before the budget is finalised. He warned if the VAT increase does not proceed, it could lead to major budget cuts in critical areas, affecting government priorities.

“Hopefully, they can reach an agreement to move the process forward and finalise the budget. If not, it may have serious implications for the government of national unity and could negatively impact political stability,” said Duvenhage.

The political tensions around the budget have already caused delays. The original budget speech, set for Wednesday, February 19, had to be postponed due to opposition parties’ lack of support. 

In an unprecedented move, Speaker Thoko Didiza announced the delay, noting that it was the first time in over 30 years that budget proceedings had been postponed.

Despite ongoing debates, ANC Secretary-General Fikile Mbalula reassured the public during his visit to the Free State that the budget speech would proceed as planned.

OFM News/Kekeletso Mosebetsi mvh