Apr 3, 2025, 1:56 PM
Apr 2, 2025, 6:12 PM

Democratic Alliance votes against national budget, shaking unity government

Highlights
  • The Democratic Alliance opposed a national budget amidst political tensions in the unity government.
  • The budget proposal included a tax increase aimed at generating revenue for public services.
  • The ongoing fracturing of the coalition may threaten the government’s stability and future policymaking.
Story

South Africa's fragile unity government faced significant challenges as the Democratic Alliance (DA) voted against a national budget, marking a pivotal moment in the coalition formed less than a year ago. This dissent arose after the African National Congress (ANC), which had lost its parliamentary majority for the first time in over three decades, proposed an increase in the Value Added Tax (VAT) by half a percentage point, aimed at generating revenue for public services like health and education. The DA's decision to oppose these measures, particularly the tax increases, was framed as a necessity to protect the poor majority from further economic burdens. Finance Minister Enoch Godongwana and communications from President Cyril Ramaphosa's administration indicated uncertainty about the DA's continued participation in the unity government following this vote. The resulting friction exposed deep ideological rifts between the DA, which advocates for pro-business policies, and the ANC, positioning itself more centrally left. Amidst this turmoil, the Economic Freedom Fighters (EFF), the ANC's leftist rival party, celebrated the divisions within the coalition, suggesting that such disagreements could unravel the so-called Government of National Unity (GNU). As public services in South Africa struggle under significant economic pressure, with an unemployment rate exceeding 32%, the controversy surrounding the budget and the proposed tax increase has ignited fierce debates within the political landscape. The DA's decision to challenge the budget in court only adds layers of complexity to an already chaotic situation. Smaller parties, some within the coalition and others on the fringes, influence the fate of the budget as well. As disputes loom over funding and support, concerns grow regarding the stability of the coalition government and South Africa's broader economic future.

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