The recent postponement of the 2025/26 National Budget Speech to March 12 has sparked a political tug-of-war between the Democratic Alliance (DA) and the African National Congress (ANC). While the DA claims it was their unwavering opposition to a proposed 2% VAT hike that led to the delay, the ANC counters that it was their own ministers who initially rejected the proposal, forcing the issue to be tabled later.
DA leader John Steenhuisen proudly declared victory, crediting his party’s relentless push to block the VAT increase as a win for South Africans struggling under the pressure of the ongoing cost of living crisis. He argued that if the proposed increase had gone ahead, it would have further strained the nation’s economy. “This historic victory demonstrates the DA’s muscle within the Government of National Unity (GNU),” Steenhuisen said, emphasizing the importance of prioritizing economic growth over raising taxes or increasing government debt.
According to Steenhuisen, the failure of Finance Minister Enoch Godongwana to engage with the alternative proposals presented by the DA led to the budget’s delay. He painted the postponement as a direct consequence of the ANC’s failure to accept the DA’s approach and warned that their focus would now shift to crafting a new, growth-oriented budget.
However, the ANC quickly rejected Steenhuisen’s claims. In a media briefing, Presidency Minister Khumbhudzo Ntshavheni clarified that the decision to delay the budget was not solely the result of DA opposition. According to Ntshavheni, several ANC ministers had already opposed the VAT increase, hours before the budget was due to be tabled. This prompted President Cyril Ramaphosa to convene an emergency cabinet meeting to discuss the matter further.
Ntshavheni emphasized that the decision to postpone the budget was a collective one, reached by all 10 parties within the GNU. She called for the removal of party politics from the discussion and indicated that the decision was made to allow for a more thorough discussion on the budget. Ntshavheni also hinted at the possibility of revealing the names of those who had supported the motion for delay, signaling the internal divisions that had surfaced within the government.
The clash between the DA and ANC over the VAT increase highlights the ongoing tension within the GNU, with the two parties frequently at odds over key policies and legislation. The DA has already opposed several significant pieces of legislation, including the National Health Insurance Act, Basic Education Laws Amendment Act, and the Expropriation Act. Despite their differences, however, the DA received credit from many South Africans for their role in pushing for the postponement of the budget.
As the debate continues, the future of the 2025/26 budget remains uncertain. What is clear is that the postponement has once again exposed the deep divisions within South Africa’s ruling coalition, leaving the nation waiting to see what path will be taken to address the country’s pressing fiscal challenges.
