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Daily Maverick
4 days ago
- Business
- Daily Maverick
SA almost has a Budget — finance committee adopts fiscal framework, despite MK and EFF rejections
After multiple false starts, a key aspect of the 2025 Budget was adopted in Parliament on Wednesday, with the support of the ANC and DA. When the second iteration of the 2025 Budget came before Parliament's finance committee in April, the divisions in the Government of National Unity (GNU) were on full display. The Democratic Alliance (DA) refused to support the adoption of the fiscal framework and it only moved through the committees and then the National Assembly thanks to the support of non-GNU parties such as ActionSA. On Wednesday, 4 June, the GNU's largest members, the African National Congress (ANC) and DA, finally found each other and the fiscal framework was passed by a vote of seven to three. The passing of the fiscal framework is a key step in the budgeting process. This framework establishes economic policy and revenue projections and sets the overall limits to government spending. This report must be adopted within 16 days after Finance Minister Enoch Godongwana tables the Budget. While the DA opposed the fiscal framework in Budget 2.0, Wednesday's situation was different, with both the ANC and DA supporting the measure against the opposition of the Economic Freedom Fighters (EFF) and uMkhonto Wesizwe (MK) party. Wednesday's meeting was briefly halted to find a bigger venue in Parliament to accommodate all the MPs, journalists and officials, as well as ensure it was recorded, in line with MPs' requests. There were several comments and queries by MK party MPs, including axed finance minister Des van Rooyen and former Eskom boss Brian Molefe. At one point, Molefe said the fiscal framework should include the expanded unemployment rate (43.1%) rather than the narrow definition (32.9%), but his suggestion was shot down. The MK and EFF also criticised the increase in the fuel levy, with Molefe describing it as 'regressive' and 'not pro-growth'. On Tuesday, the Western Cape Division of the High Court dismissed the EFF's urgent bid to block the fuel levy increase. Issues were raised on whether the Budget was that of an austerity budget, denied by the ANC – an answer the MK party and EFF continued to reject. It was questioned several times during the meeting whether MPs were making points simply to grandstand 'because there were cameras'. This seemed evident when EFF MP Omphile Maotwe raised objections over a section of the report that dealt with 'not providing bailouts' to state-owned entities (SOEs), rather than 'capitalising SOEs'. Maotwe said she was at Transnet when she claimed it had been successful under the management of fellow finance committee member Brian Molefe – the former Transnet CEO turned State Capture accused, and now a member of the MK Party on its parliamentary benches. Next week, the National Assembly will vote on whether to adopt the fiscal framework in a sitting at the Cape Town International Convention Centre. When the fiscal framework is passed, other steps in the budgeting process include the passing of the Division of Revenue Bill and the Appropriation Bill. During the tabling of the fiscal framework in the National Assembly in April, the ANC appeared jubilant when it was passed without the DA's support, while the DA had harsh words for the ANC and other parties who supported that version of the Budget. It's unlikely there will be such acrimony next week. DM
Eyewitness News
07-05-2025
- Politics
- Eyewitness News
Analysts say DA's court tactics within GNU an effective way to challenge positions it disagrees with
JOHANNESBURG - While some have accused the Democratic Alliance (DA) of undermining the Government of National Unity (GNU) by taking matters to the courts, analysts say it's the most effective way to retrospectively challenge positions it disagrees with. The DA has taken both the Expropriation without Compensation Act and the Employment Equity Amendments Act to the courts. In April, it successfully challenged the passing of a fiscal framework in Parliament, a move the African National Congress (ANC) pushed through with the help of non-GNU parties like ActionSA and Build One South Africa (BOSA). The DA is the second-largest member of the GNU. Its attempts to reverse the government's stance on the two acts, as well as the Basic Education Laws Amendment (BELA) Act and the National Health Insurance (NHI) Act, have been politically unsuccessful. READ: DA argues Parly erred in processing of Employment Equity Amendment Act Independent analyst, Luhkona Mguni, said it was not surprising, as the DA is known for being litigious. But he said that government must ensure there are no gaps in the laws passed. "The other question is those who frame legislation, regulations and policies are adherent to the Constitution, cause whether they are taken to court by the DA, or any other entity for that matter, if what they are prescribing and what they are putting on paper and passing through our institutions of democracy does not stand constitutional master, then there is a problem." This week has also seen the courts deliver judgment on the dual citizenship challenge and cadre deployment, which were taken up during the DA's time on the opposition benches. Meanwhile, Wit's University's Professor Susan Booysen said that the DA's decision to use the courts sent an important message to its supporters. "DA wants to show its followers, its voters, that yes, we have influence to make a difference. We saw it articulated in a statement by Helen Zille a day or so ago, where she says they will operate in whatever way it has the most impact."
