ANC secretary-general Fikile Mbalula says the recent impasse regarding the national budget requires the government of national unity (GNU) to reset.
This decision was made by the ANC’s National Working Committee, which sat on Monday to discuss a number of issues, including the controversial National Budget.
Speaking at a press briefing on Tuesday, Mbalula told the media that the GNU has to review its terms through fresh negotiations, which are due to take place in the next five days.
Invited other parties
Mbalula has already written to all political parties to invite them to a meeting to discuss the discord around the budget.
“What we have agreed to do is to reset, to say that this GNU must be governed by rules. The fact of the matter is that the ANC does not have the absolute majority. We have a responsibility to listen and engage with them,” he said.
Mbalula has, however, raised concerns about the conduct of the DA. He has accused them of pushing against the objectives of the GNU.
“The DA has acted as an opposition force… it seeks to divide government and confuse the public. It seeks to claim victory without assuming responsibility. Its dishonesty undermines the very essence of collective governance,” he said.
DA accused of sowing discord in the GNU
He particularly mentions the Basic Education Laws Amendment Act, the National Health Insurance Act and the Expropriation Act, which the DA has rejected.
And recently the DA was leading the charge against a value-added tax increase tabled in the National Budget. It has gone as far as taking the matter to court.
The national budget was finally passed in Parliament last week. It was passed with 194 members voting in favour of the fiscal framework and 182 against it.
The ANC was supported by its partners in the GNU except the DA and Freedom Front Plus. They also managed to sway ActionSA and Mmusi Maimane’s Build One South Africa to rally behind the budget.
The ANC also supported a report that recommends that the proposed 0.5 percentage point increase in VAT for the 2025/26 financial year be abandoned, along with income tax bracket adjustments.
Alternative methods to increase revenue
It further prompts the National Treasury to look at alternative methods of increasing revenue. This before the VAT increase comes into effect on 1 May.
The DA held its Federal Executive meeting last week to discuss their standing in the GNU. But it has not yet indicated what their next move will be.
Mbalula has indicated that if the DA does decide to exit the GNU, they will try to get other political parties on board.
“We are not desperate,” Mbalula said, highlighting that the ANC was able to pass the budget without the DA.
