Political tensions as ANC sides with ActionSA on budget

 Members of the National Assembly are preparing to vote on the revised fiscal framework on Wednesday afternoon.

This follows the adoption of the 2025 budget report by Parliament's Standing Committee on Finance, which includes some recommendations.

The ANC has thrown its weight behind a proposal from ActionSA to make amendments by removing the 0.5-percentage point increase in VAT, and offering relief to personal income taxpayers.

The proposal includes a 30-day pause in the budget process during which the National Treasury would work on adjustments.

The ANC's deal with ActionSA has soured its relationship with its GNU partner, the DA.

"The serious damage done is that ActionSA has shamefully shut down the required government spending review with this vote," says the party's national spokesperson Willlie Aucamp.

"This is extremely irresponsible and will hand a blank cheque to the ANC to continue spending government money without review this is also a serious infraction by the ANC which has crossed a line in the sand by using a non-GNU party to pass the budget," added Aucamp.

ActionSA's Athol Trollip however says the deal offers protection from excessive taxation, and worsening economic pressures.

"We believe we played a really prominent role in getting this budget referred back to find alternative revenue streams and to consider the reviews around expenditure and to prevent wasteful expenditure."

ANC secretary general Fikile Mbalula says that policy disagreements are to be expected in a power-sharing government.

"If you engage with this process on the basis of political scoring it may lead to situations where the GNU itself [ultimately] would have to be reconfigured. The ANC is committed to the GNU with all its partners but the maturity of partners is very important."