Even 'anc Ministers' Differed On Budget, Not Just Da: Ntshavheni

Minister in the Presidency Khumbudzo Ntshavheni has dismissed a claim by the Democratic Alliance DA that it prevented a proposed 2 increase in value added tax VAT and thus forced a postponement of the 2025 budget .

Finance Minister Enoch Godongwana was unable to present the budget on Wednesday 19 February following disagreements within the government of national unity GNU on the proposal.

The postponement resulted from the DA's resolute opposition to the ANC's African National Congress plan to hike VAT at a time when millions of South Africans are already suffering under a cost-of-living crisis, DA leader John Steenhuisen said in a statement on Wednesday 19 February.

However, at a media briefing after Parliament adjourned, Ntshavheni explained that the delay was not caused by a party issue involving the DA, ANC, Patriotic Alliance or other GNU parties.

It was a Cabinet decision. The focus of the discussion is not about party politics. Its never a DA-ANC issue. Its a collective Cabinet decision, she said.

Youre making an assumption that the differences were from one party or the other. That is completely wrong. The differences were across parties, including ministers who you would call ANC ministers, but we are all ministers of government.

Ntshavheni emphasised that Cabinet ministers requested more time to engage with the proposed trade-offs in the budget.

Speaking at the briefing, Godongwana said the proposed 2 VAT increase is not contentious on its own. What is going to replace it is also contentious.

What we are grappling with is not necessarily 2 per se but given the challenges and priorities that we are facing, how do we fund them? he asked.

Thats the debate. Do we borrow more and what are the implications of that? Do we continue cutting expenditure or raise tax? The general agreement is that in the current environment, we need to find a way of funding our priorities. The debate is what is the best way of doing it.