President Cyril Ramaphosa has confirmed that the discussions regarding the 2025 National Budget passing in the Parliament are still ongoing.
This follows Finance Minister Enoch Godongwana tabling the budget last week, which included a proposed VAT hike of 0.5% for 2025/2026, and another 0.5% increase for 2026/2027, ultimately raising the VAT rate to 1%.
The proposal has been rejected by several parties.
The proposed budget is set to be reviewed and debated by the National Assembly and the National Council of Provinces (NCOP).
With the ANC leading the Government of National Unity (GNU), after losing the majority in the 2024 general elections, it will need support from other political parties to secure enough votes for the budget.
ANC secretary general Fikile Mbalula confirmed last week that the party will collaborate with parties that are not in the GNU, in a bid to garner support for the national budget.
“We have been talking to all political parties, and our door of engagement remains open to political parties within the GNU and beyond,” Mbalula said.
However, the DA, which is part of the GNU, has made it clear that it will only support the budget if the proposed 0.5% VAT increase was temporarily introduced, with DA leader John Steenhuisen opposing the hike in its current form.
Speculation is growing that the ANC is in discussion with the Economic Freedom Fighters (EFF), which is not part of the GNU, to secure their support for the budget.
Speaking with the media on the sidelines of the Bana Pele Early Childhood Development Leadership Summit in Braamfontein, Gauteng, Ramaphosa emphasised his support for the budget, particularly highlighting the significant allocation of funds to the Department of Basic Education.
“On the issue of the budget, we have been very bold, on allocating as much money as the minister has allocated R10 billion for basic education.”
”Education is still our biggest spend in our country, and we are very proud of that,” Ramaphosa said.
“Allocating this amount of money gives a clear signal of where we want to go with regard to Early childhood development (ECD).”
Ramaphosa confirmed that discussions with various political parties are under way.
”We are going to have a number of discussions, across the government with various political parties because it is not in the hands of the Parliament and the Parliament is the one that is going to be the arbiter,” he said.
“Let’s leave that to parliamentarians. Fortunately, I am not a parliamentarian as you know, so they will deal with that.”
Ramaphosa explained that negotiations were not restricted to a single party.
“So everyone who is represented in Parliament will be interacting and engaging on the budget issue. We are not just talking at one party,” he said.
IOL Politics
Get your news on the go, click here to join the IOL News WhatsApp channel.