DA using budget rejection as political leverage, says Finance Minister
Finance Minister Enoch Godongwana has accused the Democratic Alliance (DA) of rejecting the national budget as a political maneuver to pressure President Cyril Ramaphosa into making concessions on unrelated matters. According to Godongwana, the DA’s opposition is not primarily about fiscal policy but rather an attempt to force the government’s hand on other legislative issues.
The controversy arose after DA leader John Steenhuisen announced his party’s outright rejection of the budget on Wednesday. This decision came despite the Treasury revising its initial plan to increase Value-Added Tax (VAT) by two percentage points, reducing it to a 0.5 percentage point hike. The reduction was made following extensive consultations, yet the DA remained firm in its opposition.
Godongwana Accuses DA of Political Tactics
Speaking at a pre-budget press briefing, Godongwana suggested that the DA’s opposition had little to do with the VAT increase. Instead, he argued that the party was leveraging the budget debate as a means to regain political influence after suffering recent legislative defeats. He pointed to the DA’s losses regarding the Basic Education Laws Amendment (BELA) Act, the National Health Insurance (NHI) Bill, and the Expropriation Act as key factors driving their stance.
Finance Minister
“Is their problem the tax, or is their problem something else?” Godongwana asked. “It’s important to call a spade a spade. I personally met with the DA on the seventh of this month, despite their claims that they have not been consulted. Their rejection of the budget is clearly about more than just the VAT increase.”
DA’s Internal Struggles and Budget Standoff
The finance minister further elaborated on his belief that the DA’s stance is fueled by internal tensions and frustrations within the party. He claimed that recent legislative defeats have left the DA eager to secure a political victory, even if it means using the budget as a bargaining tool.
“In their discussions, they highlighted a couple of issues,” Godongwana said. “One of these issues is that they have lost a number of battles, which is creating tensions within their own party. As a result, they want to win something. It’s not surprising that in their latest submission to the president, they have included demands that fall outside the scope of the budget, including changes to the Expropriation Act.”
The Expropriation Act has long been a contentious issue, with the DA opposing provisions that they believe threaten property rights. By tying their budget rejection to broader political demands, the DA appears to be using the fiscal process as a means of influencing other legislative battles.
Political Implications of the Budget Rejection
The DA’s rejection of the budget has significant political implications. While opposition parties routinely challenge government policies, an outright refusal to support the budget is an unusual and bold move. This decision could set a precedent for future fiscal negotiations, where political parties use budget approvals as leverage for unrelated issues.
Additionally, the situation highlights the ongoing tensions between the ruling African National Congress (ANC) and the DA. The ANC has frequently accused the DA of employing obstructionist tactics, while the DA argues that it is holding the government accountable for poor financial management. However, Godongwana’s remarks suggest that the ANC views the DA’s strategy as an attempt to exert undue influence rather than a principled stance on economic policy.
What Lies Ahead?
As the political standoff continues, it remains to be seen how the government will respond. The ANC’s parliamentary majority means that the budget could still pass despite DA opposition. However, a prolonged dispute could delay budget approvals and create financial uncertainty. The Treasury will likely continue engaging with stakeholders to address concerns, but if Godongwana’s assessment is correct, the DA’s demands may extend beyond fiscal matters.
The coming weeks will determine whether the DA’s approach will lead to any political gains or if the ANC will push forward with its budget plan despite opposition resistance. For now, South Africans are left watching as economic policy and political maneuvering become increasingly intertwined.
