Budget 2025: ANC sends SOS to EFF

AN ANC NEC member has confirmed that the party was in last-minute discussions with the EFF in an attempt to get their backing of the budget that Finance Minister Enoch Godongwana is expected to table on Wednesday.

The DA, the second-largest party in the Government of National Unity (GNU), apparently continues to refuse to budge on any proposed VAT hike.

Finance Minister Enoch Godongwana was forced to abandon his budget last month after the DA and some GNU partners refused to support the 2% increase in VAT.

The senior NEC member said the party was desperate to get the budget passed and was willing to make concessions to the EFF in exchange for their support.

The EFF has, however, consistently opposed any increase in VAT, but the ANC is hoping to persuade them to change their stance.

While some senior members of the party were opposed to the idea of approaching the EFF, a member of the ANC NEC had been mandated to meet with the party yesterday in an attempt to convince them to vote in their favour, said the source.

"We are looking for alternatives outside of the GNU to pass the budget…The DA is forcing our hand, and we are willing to work with other parties to get the budget passed,” said another NEC member, on condition he was not identified.

A senior source in the EFF confirmed that high-level discussions had started between the two parties.

The EFF yesterday did not respond to questions on whether they had been approached by the ANC and about their stance on the budget.

ANC spokesperson Mahlengi Bhengu-Motsiri did not answer her phone nor respond to text messages.

Last week the ANC and the DA were in a stand-off during a special Cabinet meeting, scrambling to reach an agreement on the passing of the budget.

Godongwana is expected to propose on Wednesday a gradual increase in VAT over the next two years, starting with a smaller hike of 0.5% this year.

GNU partner, the Good Party said its decision on whether or not to support the reported 0.5% VAT increase budget will depend on the rest of the budget.

“Attempts to table the 2025 budget have degenerated into political farce. The ANC is desperate to save face after last month’s proposed budget was washed up on the GNU rocks, and the DA is just as desperate to seize the moment to prove it has the power to put a spoke in the ANC’s wheel.

"Neither party’s position is pro-poor, or pro-justice. Though sharply differing in approach, both parties are effectively articulating the same business-as-usual approach to the budget that has failed to narrow inequality or reduce poverty since apartheid ended 31 years ago.

"The DA is correct that the dividends of reducing government wastage, while growing the economy, will eventually trickle down to poor people. But how long does the DA think those people living in shacks, without sufficient income to feed themselves, should patiently wait?”

Political analyst Sandile Swana believes the DA is in a strong bargaining position and is unlikely to leave the GNU.

"The DA is in control of ministries, and they are able to market themselves by controlling ministries. So, the ANC trying to entice the EFF into collaboration on the VAT issue, it would have to offer the EFF something worthwhile," Swana said.

“Remember that the DA, ANC, EFF FF Plus serve in the same parliament anyway. The FF Plus has worked with the EFF to oust the DA in some municipalities. They have also worked with the ANC, so these are some considerations."

Another political analyst, Dr. John Molepo said the death of the GNU was inevitable but that the EFF and ANC could work together on the VAT issue.

Molepo believes that the DA would ultimately concede defeat and accept the VAT hike.

“But this tells you the nature of the GNU and how it has been structured…Today we are fine and tomorrow we are not fine…It's very possible the EFF works with the ANC.“You can see lately how Malema has been warming up to the ANC. He has been making remarks on how best they can work together,” Molepo said.

Cape Times