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

Bali ferry sinking leaves at least four dead, dozens missing
11:00 03.07.2025
US contractors say their colleagues are firing live ammo as Palestinians seek food in Gaza
10:55 03.07.2025
Azerbaijan’s Foreign Ministry: 'We call on Russian side to refrain from steps and statements that artificially aggravate situation'
10:30 03.07.2025
Scientists find natural substance stopping spread of cancer cells
10:15 03.07.2025
Haber Global: Azerbaijan hosts important forums ahead of ECO summit
10:00 03.07.2025
Number of Azerbaijanis arrested in Russia's Yekaterinburg reaches 8
09:45 03.07.2025
14 injured after skydiving plane crashes at New Jersey airport
09:20 03.07.2025
President of Azerbaijan Ilham Aliyev, President of Uzbekistan Shavkat Mirziyoyev make press statements
09:10 03.07.2025
WB allocates $2M for preparation of sustainable development project in Baku
22:00 02.07.2025
Malaysia inviting Azerbaijan to participate in trade incentive program
21:45 02.07.2025
Malaysia expects further expansion of palm oil trade with Azerbaijan
21:30 02.07.2025
EBRD updates current portfolio of projects in Azerbaijan
21:30 02.07.2025
12 Georgian MPs lose parliamentary mandates
21:00 02.07.2025
Asan Jakishev: Kazakhstan strengthens status as key transit hub in region
20:40 02.07.2025
Zakharova: 'We call on Baku to take measures to return ties to level of strategic alliance'
20:30 02.07.2025
Kyrgyz ambassador to Azerbaijan also appointed as envoy to Georgia
20:20 02.07.2025
Bangladesh court sentences ex-Premier Hasina in contempt case; first conviction since ouster
20:00 02.07.2025
Russia says reduction or cessation of Western arms supplies to Ukraine brings conflict closer to its end
19:45 02.07.2025
Israeli prosecution cancels Netanyahu’s corruption trial sessions next week over US visit
19:30 02.07.2025
Mamasadyk Bakirov: Kyrgyzstan creates all necessary conditions for business
19:15 02.07.2025
Lachin holds panel session on Role of Women in Urban Development
19:00 02.07.2025
Central banks of Azerbaijan, Georgia mull implementation of systems supported by AI
18:45 02.07.2025
Azerbaijani military personnel participate in International Anatolian Eagle-2025
18:30 02.07.2025
Shavkat Mirziyoyev to open Uzbekistan park in Baku
18:15 02.07.2025
Peskov: Head of Russia's Investigative Committee, Azerbaijan's prosecutor general mull problematic issues
18:00 02.07.2025
South Korean ex-premier, minister summoned over Yoon’s martial law probe
17:45 02.07.2025
Trump says Israel has agreed to 'necessary conditions' to finalize 60-day ceasefire in Gaza
17:30 02.07.2025
DR Congo-Rwanda peace deal ‘does not address serious crimes committed in the east': Amnesty International
17:15 02.07.2025
China again urges its citizens to avoid travel to Iran
17:00 02.07.2025
Australia's Qantas says 6 million customer accounts accessed in cyber hack
16:45 02.07.2025
US accuses UN expert of ‘economic warfare’ over report on companies aiding Israeli occupation
16:30 02.07.2025
150 National Guard troops reassigned from Los Angeles security mission to wildfire response
16:00 02.07.2025
Israeli strikes kill another 29 Palestinians in Gaza Strip
15:45 02.07.2025
Revenue of China’s software industry grows by 11.2%
15:30 02.07.2025
President of Azerbaijan Ilham Aliyev’s one-on-one meeting with President of Uzbekistan Shavkat Mirziyoyev begins
15:20 02.07.2025
Zakharova: Friendly relations between Russia, Azerbaijan extremely important
15:15 02.07.2025
President of Northern Cyprus arrives in Azerbaijan
15:00 02.07.2025
COP29 president: US withdrawal from Paris agreement won't stop global climate movement
14:45 02.07.2025
President of Uzbekistan arrives in Azerbaijan on state visit
14:30 02.07.2025
Saudi Arabia receives written message from Iran
14:15 02.07.2025
Hamısı