The African Congress for Transformation (ACT) has criticised the national budget presented by Finance Minister Enoch Godongwana, saying it was meant to benefit established businesses.
Mohau Khumalo, the spokesperson for ACT, referred to the 2025 Budget Speech delivered on Wednesday as a betrayal of ordinary South Africans in favour of big businesses and international financial institutions.
Khumalo accused the government of prioritising the interests of corporate elites, the World Bank, and the African Monetary Fund over the needs of the poor, the unemployed, and struggling small businesses.
Increase in VAT will hurt poor people
“This budget is a direct assault on the poor, particularly the unemployed, the working class, and small businesses already struggling to survive in the collapsing economy,” said Khumalo.
He raised concern over the increase in value-added tax (VAT), arguing that it will increase the cost of living and worsen poverty by making essential goods and services even more expensive.
“By increasing VAT, the ANC has chosen to appease corporate elites while pushing millions of South Africans further into poverty.
“This reckless decision will make food, transport, and essential goods even more unaffordable for those who are already suffering under rising unemployment, stagnant wages, and failing service delivery.”
Budget more than a financial plan
He also criticised the government for failing to tax the wealthy or cut unnecessary spending, instead shifting the burden onto the poor.
The party is now calling on all opposition parties and members of the government of national unity who claim to support the poor to vote against the budget.
Khumalo said the budget is more than just a financial plan but a political statement about who really governs South Africa.
“The ANC has made its choice. Now, every party and every MP must decide where they stand,” said Khumalo.
“We urge all South Africans to take note of who votes for and against this budget, as it will reveal who truly stands with the poor and who merely pays lip service to their struggles,” he added.
