The national budget was finally passed in Parliament on Wednesday, with 194 members voting in favour of the fiscal framework and 182 against it.
The ANC was supported by its partners in the government of national unity (GNU)except for the Democratic Alliance and Freedom Front Plus. They also managed to sway ActionSA and Mmusi Maimane’s Build One South Africa to rally behind the budget.
Progressive Caucus
Other parties that voted against the budget include those belonging to the Progressive Caucus – the Economic Freedom Fighters (EFF), uMkhontho we Sizwe Party (MK Party), African Transformation Movement (ATM), United African Transformation and National Coloured Congress.
However, the DA is not taking the matter laying down. The second-largest party in the GNU intends on filing papers in the High Court to challenge Parliament’s passing of the budget. This as they believe processes were flouted during the sitting of Parliament’s Finance Committee on Tuesday.
The DA will also challenge the constitutionality of certain revenue collection and expenditure measures becoming binding through a speech by the finance minister without Parliament having to consider, oversee or approve them.
Out of touch with the people
“We look forward to this matter being addressed in court, for the benefit of all South Africans who do not agree to this budget. The DA refuses to give in to the ANC’s tax increases. They remain hellbent on making people poorer,” party leader John Steenhuisen said in a statement. This happened following the National Assembly sitting.
“The ANC is out of touch with the people. And if they bought their own groceries or filled their own tanks, they would know how expensive life already is.”
The EFF unsuccessfully tried to halt today’s proceedings after sending a letter to National Assembly Speaker Thoko Didiza. It also raised issue with Tuesday’s proceedings.
Like the DA, the red berets, along with the ATM and MK Party, are adamant that there were serious procedural flaws. These stem from the sitting of Parliament’s Finance Committee, they claimed.
Adoption of Fiscal Framework and Revenue Proposals
They particularly raised issue with the way the budget framework report was adopted by the ANC, IFP and Action SA. The bone of contention is around the Standing Committee on Finance’s decision to adopt the report without voting on whether it accepts or amends the 2025 Fiscal Framework and Revenue Proposals.
The recommendation in the report abandons the proposed 0.5 percentage point increase in Vat for the 2025/26 financial year. Along with income tax bracket adjustments.
The report recommends that National Treasury look at alternative methods of increasing revenue within 30 days.
