Tensions in South Africa’s Coalition Government: A Battle Over the Budget?

World 11:54 04.04.2025

South Africa's coalition government is on shaky ground, with the sharp divisions between its two biggest parties - the African National Congress  and Democratic Alliance - exposed in a crucial vote on the national budget.

The centre-right DA voted against the fiscal framework - a key part of the budget - after rejecting an increase in VAT, and demanding a cut in spending across all government departments.

The ANC, which positions itself as a centre-left party, refused to bow to what it called the DA's demand for an "austerity budget".
It demonstrated its political acumen by winning the support of a slew of smaller parties - both inside and outside government - to get the fiscal framework through parliament by 194 votes to 182.

The DA filed papers in court to challenge the vote, saying it was "procedurally flawed" while its top leadership is due to meet later to decide whether or not to remain in what South Africans call a government of national unity (GNU).

Professor William Gumede, an academic at Wits University's school of governance in Johannesburg, told the BBC it was unclear whether the DA would quit the government at this stage.

"It will be asking itself whether this is the tipping-point or whether it should wait - at least until the outcome of the court case," Prof Gumede said.

The coalition government was formed less than a year ago after the ANC lost its parliamentary majority in elections for the first time since Nelson Mandela led it to power in 1994 at the end of white-minority rule.

South Africa's business sector lobbied the two parties to enter into a coalition, seeing it as the best option to guarantee economic stability.
But hinting that the DA's participation was no longer certain, DA spokesman Willie Aucamp accused the ANC of a "serious infraction" and said the party had "crossed a line in the sand".

DA federal chair Helen Zille said the party would consider all its options, and not rush into a decision.

"We know that being in a coalition requires compromise. You can't get it all. But the ANC also can't get it all, and they are refusing, point blank, to share power," Zille added.

The ANC took an equally tough stand, with its parliamentary chief whip, Mdumiseni Ntuli, accusing the DA of "complete betrayal" by breaking ranks with its partners in the GNU.

"I don't know what is going to happen with them now, but the GNU remains," he added, referring to the fact that other parties in the 10-member coalition remain committed to it.

President Cyril Ramaphosa's spokesman Vincent Magwenya also threw down the gauntlet to the DA, saying: "You can't be part of a government whose budget you opposed."

The DA found itself voting alongside South Africa's two biggest, and most populist, opposition parties - former President Jacob Zuma's uMkhonto weSizwe (MK) party and Julius Malema's Economic Freedom Fighters (EFF).

Advocating the nationalisation of key sectors of the economy, these two parties are the implacable foes of the pro-business DA.
But the three parties were united in opposing a VAT increase, believing it would hit the poor hard.

As DA leader John Steenhuisen put it: "The ANC is out of touch with the people, and if they bought their own groceries or filled their own tanks, they would know how expensive life already is."

But the ANC argued that a VAT increase - set at 0.5% this year and a further 0.5% next year - was necessary to raise revenue, and to offer public services such as health and education.

Crucially, the Inkatha Freedom Party (IFP) voted with the ANC, signalling the end of the alliance it formed with the DA in the build-up to the election in a failed bid to keep Ramaphosa's party out of power.

ActionSA - a small opposition party which broke away from the DA - helped the ANC clinch the vote.

It said it had reached a deal with the ANC that would see the VAT increase scrapped, while alternative ways of raising revenue for the government are explored.

"Yesterday's adoption of the report on the fiscal framework was merely one step in a multi-stage budgeting process before the final budget is approved," Action said in a statement.

Prof Gumede said the ANC would find it difficult to convince the public to pay more taxes when public services were crumbling.
"The optics don't look good for the ANC," he told the BBC.

"The DA has taken the budget as an opportunity to make a big impact, and to show it is pro-poor."

The dispute over the budget is the latest sign of the sharp differences between the two parties, with the DA also challenging in the courts three other pieces of legislation - including the land expropriation act.

This law was one of the issues that led to US President Donald Trump's administration cutting aid to South Africa.

The Trump administration has now imposed tariffs of 30% on all South African imports, in a move that is likely to be a huge blow to its already floundering economy.

"They have got some bad things going on in South Africa. You know, we are paying them billions of dollars, and we cut the funding because a lot of bad things are happening in South Africa," the US president said, before going on to name other countries.
In a statement, Ramaphosa's office condemned the new tariffs as "punitive", saying they could "serve as a barrier to trade and shared prosperity".

But for many South Africans, the tariffs signal the need for the two biggest parties to resolve their differences and work together - or risk seeing the nation sink into a deeper economic crisis at a time when the unemployment rate is already at more than 30%.

Madina Mammadova\\EDnews

IEPF issued a statement regarding Azerbaijani children at the UN Human Rights Council

News line

The heads of state of Azerbaijan and Vietnam made statements to the press
11:57 12.05.2025
May 12 is International Plant Health Day
11:53 12.05.2025
Azerbaijan and Latvia to establish working group on agriculture
11:53 12.05.2025
Azerbaijani Foreign Minister discusses cooperation prospects with Bahraini Prime Minister
11:48 12.05.2025
Baku to host 1st Forum of European and Postal Leaders
11:46 12.05.2025
Azerbaijan's national coordinator for combating human trafficking
11:42 12.05.2025
Ilham Aliyev met with residents who moved to Kangarli village
11:38 12.05.2025
Ilham Aliyev attended inauguration of Kangarli village secondary school in Aghdam
11:34 12.05.2025
Azerbaijan, Bahrain mull prospects for cooperation
11:26 12.05.2025
Turkish defense minister to visit Azerbaijan
11:24 12.05.2025
A key message from Ilham Aliyev: Those who don't reckon with us today will regret it tomorrow
11:19 12.05.2025
" We are working on a cable road project connecting Shusha with Khankendi"
11:13 12.05.2025
National Leader Heydar Aliyev’s 102nd anniversary marked in Moldova
11:13 12.05.2025
Sport festival marking National Leader Heydar Aliyev's 102nd anniversary held in German
11:08 12.05.2025
President Ilham Aliyev and First Lady Mehriban Aliyeva attended opening of Aghdam Mugham Center
11:04 12.05.2025
Azerbaijan, UAE explore strategic partnership
10:59 12.05.2025
Azerbaijani President sends congratulatory letter to German Chancellor
10:56 12.05.2025
Azerbaijan debuts at Venice Architecture
10:51 12.05.2025
Azerbaijani FM embarks on official visit to Bahrain
10:48 12.05.2025
Jeyhun Bayramov discussed regional issues with UAE Foreign Minister
10:45 12.05.2025
Azerbaijan Army holds activities on cybersecurity
10:39 12.05.2025
Azerbaijan to establish circular power supply among Aghdam and Asgaran
10:32 12.05.2025
National Leader Heydar Aliyev’s 102nd anniversary marked in Stockholm
10:27 12.05.2025
Jazz concert marking Independence Day of Azerbaijan held in Helsinki
10:23 12.05.2025
National Leader Heydar Aliyev's 102nd anniversary celebrated in London
10:16 12.05.2025
10th National Marketing Forum held in Baku
10:13 12.05.2025
First International Congress of Azerbaijani Neurosurgeons wraps up in Baku
10:07 12.05.2025
Jeyhun Bayramov leaves for an official visit to the Kingdom of Bahrain
10:03 12.05.2025
Members of the Public Council under ANAMA have visited the region
16:52 08.05.2025
The "Roots of Peace" organization will host the "Peace Walk"
16:49 08.05.2025
"Since 1948 SL Heads of State have ‘relayed’ on the Ethnic conflict"
15:32 08.05.2025
A conference on the topic "Heydar Aliyev-Independence and Glorious Victory" was held in Lachin
12:44 08.05.2025
Azerbaijan showcases tourism opportunities in Israel
12:39 08.05.2025
''Azerbaijan House'' opened in Lebanon
12:33 08.05.2025
Vietnam prioritizes strategic and political cooperation with Azerbaijan
12:27 08.05.2025
Opening of new Baku City Prosecutor's Office building held
12:23 08.05.2025
Azerbaijani and Morocco may organize mutual cultural days
12:15 08.05.2025
Sahiba Gafarova: Heydar Aliyev's personality is symbol of wisdom for every Azerbaijani
12:09 08.05.2025
Milli Majlis to adopt statement on Heydar Aliyev's 102nd birth anniversary
12:03 08.05.2025
Azerbaijan Confederation of Trade Unions organized an event
11:58 08.05.2025
Hamısı