The South African Communist Party (SACP) has expressed its dissatisfaction after being excluded from crucial discussions surrounding the National Budget, despite being in an alliance with the African National Congress (ANC) and the Congress of South African Trade Unions (COSATU). The SACP’s spokesperson, Alex Mashilo, voiced concerns about the lack of consultation with their party regarding the proposed 2% VAT increase, a key issue that led to the postponement of the 2025/26 Budget until March 12. According to Mashilo, the SACP was not involved in any of the consultations that took place between the Finance Minister, Enoch Godongwana, and other political parties, such as the ANC and the Democratic Alliance (DA).
Mashilo criticized the government’s consultation process, noting that while the ANC and the DA were engaging with the minister, the SACP was left out of these talks. “The SACP is in alliance with the ANC and COSATU. There is a problem when consultations are held between the ANC, the minister of finance, and the DA without the involvement of our alliance,” Mashilo said during a panel discussion on Newzroom Afrika. He added that this lack of inclusivity posed a serious issue for the unity of the alliance, especially since the DA, with its opposition to the VAT increase, had emerged as a significant player in the discussions.
The situation was further complicated by conflicting claims over the VAT increase. Finance Minister Godongwana indicated that the Cabinet would need to determine how to address the country’s fiscal challenges, considering options like borrowing, cutting government spending, or raising taxes. This uncertainty led to the postponement of the Budget. While Godongwana emphasized that the issue of tax hikes, particularly the VAT increase, was central to these discussions, he stressed that it was critical to consider viable alternatives before finalizing the budget.
Meanwhile, Minister in the Presidency, Khumbudzo Ntshavheni, clarified that the delay of the Budget was a collective decision made by the entire Cabinet, not solely the result of opposition from the DA. She denied the DA’s claims of having forced the delay, asserting that even some ANC ministers had expressed opposition to the proposed VAT hike. However, Mashilo pointed to a deeper issue, accusing the DA of pushing an “anti-worker” agenda that could provoke further political conflict. “The DA is going to be caught with serious surprises. Its macroeconomic policies and budget expectations are anti-workers,” Mashilo warned, signaling potential confrontations in the coming weeks.
The SACP’s frustration reflects broader concerns within the Government of National Unity (GNU) over how decisions regarding the country’s economic policies are being made without adequate consultation across the alliance. With the postponement of the Budget and the uncertainty around the VAT increase, it is clear that political tensions are building, and further disagreements over fiscal policy may only intensify as the date for the revised Budget approaches.
