logo
Parliament preps for possibility & implications of national budget not being passed

Parliament preps for possibility & implications of national budget not being passed

Eyewitness News5 days ago
CAPE TOWN - Parliament is preparing for the eventuality and the implications of the national budget not being passed next week.
Besides the main opposition parties already indicating that they don't support the budget in its entirety, the Democratic Alliance (DA) has indicated it won't support certain budget votes of departments headed by ministers they don't approve of.
Speaker Thoko Didiza said on Thursday it was not for Parliament to resolve political disputes between parties, and that its structures could only grapple with technical and money-related matters linked to the Appropriation Bill.
At a programme committee meeting on Thursday, National Assembly Secretary Masibulele Xaso advised the chief whips of political parties on the process that needed to be followed to get the Appropriation Bill approved.
The bill, which is the last hurdle in the budget process, apportions money to all state departments.
African National Congress (ANC) chief whip, Mdumiseni Ntuli, proposed that all the budget votes be put to the House for a full picture of the sticking points.
"Those votes that were publicly condemned, and positions were taken against them, let's do them last."
Didiza said that she would convene a special meeting if necessary ahead of Wednesday's vote to clarify any further uncertainties after some parties asked for further legal clarity on public spending constraints should the bill not be passed.
"Where the issues are of a political nature, I think different political parties will have to engage. What we deal with is more the process."
According to National Assembly rules, if a bill fails to pass on the first attempt, it can not be put to the House a second time in the same year, unless the rule is waived by agreement of the House.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

MPs travel and gifts received made public
MPs travel and gifts received made public

The South African

time4 minutes ago

  • The South African

MPs travel and gifts received made public

Parliament has released the 2025 register on the financial interests and other benefits of Members of Parliament (MPs). Due to the nature of their jobs, MPs are required to disclose financial interests, such as shares and other financial interests in companies and other corporate entities; remunerated employment or work outside of Parliament; directorships and partnerships; consultancies and retainerships; sponsorships; gifts and hospitality as well as benefits and interest free loans. In addition, they are required to disclose travel; ownership in land and property; pensions; rented property income generating assets; and trusts. Declaring such interests enhances transparency and strengthens public trust and confidence in parliamentary processes and decision-making. On Friday, the Joint Committee on Ethics and Members' Interests adopted the 2025 Register of Members' Interests per item 12 of the Code of Ethical Conduct and Disclosure of Members' Interests for National Assembly and Permanent Council Members. The 2025 register is the second of the seventh Parliament following the 2024 General Elections. 'As per convention following the adoption, the committee resolved to release the register to enable access to the public section of the register. The new code adopted by the sixth Parliament established the submission of interests using the prescribed electronic form, which is aimed at streamlining declarations and making the process seamless and quick. 'The adoption of the electronic declaration submission form was a strategic decision in line with the move to ensure a paperless Parliament. Also, to ensure seamless submission, the office of the Registrar availed staff to support and assist Members of Parliament with their online submissions,' Parliament said. Item 12 (7) of the Code is clear that a Member must disclose his/her registrable interests in the first quarter of the financial year. 'The code promotes a culture of openness and accountability, and the release of the register is a bold step in building public trust and confidence. Furthermore, by ensuring accountability of public representatives, the release ensures credibility of the oversight work over the executive,' Parliament said. As per item 12 (1) of the Code, the Register consists of both a public and confidential section. The public section of the register is now available to be perused by the public to ensure accountability. 'The Joint Committee on Ethics and Members' Interests further communicates that the 2025 disclosure process had a 100% compliance by the due date of all Members of Parliament. No Member of Parliament submitted late. The committee commends this milestone.' The full public section of the register can be accessed here: A full report will be published in the Parliament's Announcements, Tabling's and Committee Reports. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.

The DA is failing dismally
The DA is failing dismally

The Citizen

timean hour ago

  • The Citizen

The DA is failing dismally

Every passing week brings a new reversal for the DA. Party leader John Steenhuisen has misjudged every single power play made by the ANC. The DA performed much better as the official opposition than it did in its self-appointed role as the party that would galvanise the government of national unity (GNU). The same is true of its leader, John Steenhuisen. Its ministers have executed their duties with a zeal that puts their ANC counterparts to shame. But its larger strategy has fallen flat. The DA believed this link-up for the greater good with its former foe was a prerequisite for achieving the economic lift-off that would drag in its slipstream a fleet of benefits, such as revitalised institutions. It is self-evident that nothing like that has happened. ALSO READ: Steenhuisen has made a bad situation worse with tactical blunders Instead, the DA has been house-trained by the ANC. It barks furiously and still strains at the leash on occasion, but it will sit up and beg on President Cyril Ramaphosa's command. While I don't share the disdain of many journalists for Steenhuisen, some of the criticism is deserved. As DA leader, he has misjudged every single power play made by the ANC, from accepting a poor partnership deal at the outset to being goaded into making meaningless threats that he has been forced to back off from. Every passing week brings a new reversal for the DA. This week, its support ensured that the Appropriation Bill for all government departments was passed at its first reading. It's about as complete a climbdown as can be imagined for a party that had threatened to block the Bill. The plan had been that this would be the DA riposte to Ramaphosa's sudden firing of the DA's Andrew Whitfield, Steenhuisen had been incandescent. 'If this situation is not corrected, it will go down as the greatest political mistake in modern SA history,' he warned parliament. On the face of it, it was a brilliantly simple move. The DA would counter the ANC by singling out only departments headed by ministers implicated in corruption. ALSO READ: Steenhuisen warned of 'insubordination' over national dialogue stance Unless Ramaphosa sacked those ministers within 48 hours, the DA would join the uMkhonto weSizwe party and the department of economic development in voting down their departmental budgets, thus stymying the passage of the Appropriation Bill. The DA, said Steenhuisen, would vote against the departmental budgets of Nobuhle Nkabane (higher education), Thembi Simelane (human settlements) and 'corruption-accused ANC ministers'. The DA would also withdraw from the National Dialogue, no doubt the DA was chortling at its genius. At least three 'compromised' ANC politicians would bite the dust and the DA would be perceived to be guardians of governmental integrity. It didn't work out quite like that. Ramaphosa did indeed fire Nkabane, but it had more to do with ANC self-interest than the DA ultimatum. She was already fatally politically wounded and facing cross-party, including ANC, sanctions from the parliamentary ethics committee. ALSO READ: 'Long overdue' – Opposition parties welcome Nkabane's removal And in a real up-yours, Ramaphosa didn't fire any of the other DA-named ministers. This turned out to be just another dismally misjudged power play by Steenhuisen. But Steenhuisen has hinted that he has one card to play: proposing a motion of no confidence. This would not mean a general election – constitutionally, the earliest this could happen is in 2027 – but if it succeeded, Ramaphosa would have to resign. In that kind of scramble, because the ANC is so deeply divided, the DA could, at last, influence the direction of the state by choosing the person at the top, rather than merely lending the party their votes. It's time for the DA to etch a steely red line. READ NEXT: 'Right-wing nexus': Presidency cautions South Africans against the DA

Market keeps eye on MPC rate decision this week
Market keeps eye on MPC rate decision this week

IOL News

time3 hours ago

  • IOL News

Market keeps eye on MPC rate decision this week

All eyes on the Reserve Bank's rate decision this week. Image: Bloomberg It was an interesting week with the JSE All Share index hitting 100 000 points on Wednesday morning and the gold price breaking through $3 400 an ounce again. Internationally, US President Donald Trump announced trade deals with Japan and with the Philippines, and there are reports that the EU and US are nearing a deal. In local news the Government of National Unity held together once more as the DA agreed to support the Appropriation Bill after President Cyril Ramaphosa dismissed Higher Education and Training Minister Nobuhle Nkabane. On Thursday, Trade, Industry, and Competition Minister Parks Tau said that a 'condition precedent document' has been signed as a precursor to finalisation of the trade negotiations with the US, but little details were available. It was reported that the Framework Deal aims to resolve long-standing market access issues that both sides are interested in and to promote bilateral investments in a mutually beneficial manner. It is unlikely that South Africa and the US will reach an agreement by the 1 of August, when 30% tariffs kicks-in. The key local indicator was the June Consumer Price Index (CPI) inflation figure released on Wednesday. The inflation rate rose from 2.8% to 3%. The main driver was higher food prices, while lower year-on-year fuel prices helped to counter the increase. The inflation rate remains safely below the midpoint of the Reserve Bank's target band, and markets are still expecting one more 25 basis point cut to the repo rate this year. But will it happen at Thursday's Monetary Policy Committee (MPC) meeting? Based on the June inflation number and the outlook for inflation there is a strong case for a cut. Almost all models suggest that inflation will increase slowly during the rest of this year, but remain below the midpoint of the target band for the next year or two. The MPC has often argued that international uncertainty poses an upside risk and is an argument for keeping the repo, and our interest rate differential with the US, unchanged. The concern is that if we cut the repo rate while the Americans keep their policy rate unchanged, the rand-dollar exchange rate will weaken, increasing the cost of imported goods. This week the Federal Reserve meets the day before our MPC and their decision will play a role. They are waiting to see the inflationary impact of their tariffs and will probably keep their policy rate unchanged. Yet, from the South African point of view the dollar is relatively weaker, and the interest rate differential is less of a concern. Keeping the repo unchanged runs the risk of applying contractionary monetary policy in an economy that is barely growing. Another view is that repo rate decisions are no longer about the midpoint of the target band, but rather about the proposed new target of 3%. With a lower target in mind, it may not make sense to cut the repo rate just yet. I think the Reserve Bank has already made a strong case for the benefits of a lower target. Their models show that because inflation is already low, the cost of moving to a lower target is minimal. They don't believe interest rates will need to stay high for long, nor that much economic growth will be sacrificed in the process. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading However, their whole story rests on several assumptions, and recent research by Codera Analytics shows that there are many factors to consider. One question is how quickly inflation expectations can be anchored to the lower target. It's no use having a lower target if unions continue to base wage demands on historically higher inflation rates. Another question is whether fiscal policy can support the lower target. If public finances deteriorate, long-term interest rates on government debt will rise, and stimulatory fiscal policy could increase inflation. A lower target requires fiscal discipline. Lastly, the government as a price setter must also buy into the lower target. More than 30% of the CPI basket consists of administered prices, which in recent years have increased at rates far above the headline inflation rate. To achieve a lower average inflation rate while, for example, electricity tariffs, rates and taxes are rising steeply, those parts of the economy where prices are flexible will take interest rate strain at a high cost for the private sector. I don't think the MPC's decision will be driven by the idea of a new lower target. They need political buy-in and the inflation targets set for the next Budget cycle are at the 4.5% mid-point. But I also think that the decision about the target cannot be delayed much longer. Uncertainty does nothing to help manage expectations. Waldo Krugell is a Professor of Economics, North-West University, Potchefstroom. Image: Supplied Waldo Krugell is a Professor of Economics, North-West University, Potchefstroom. *** The views expressed here do not necessarily represent those of Independent Media or IOL BUSINESS REPORT

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store