DA leader John Steenhuisen says his party will not support a budget that is not pro-poor, but his party remains in government with the ANC that intends to increase Value Added Tax, says the writer.
Image: Armand Hough/ Independent Newspapers
THE DA's strong opposition to the proposed budget, which will see the Value Added Tax (VAT) increased from 15% to 16% over the next two years, suggests that the end of its role in the GNU is nigh.
Otherwise how will they take part in a government that proposes a budget that fails to take into account the views of other parties?
How will they represent a government that they claim overlooks the needs of the poor in society unless they are more concerned about ministerial perks?
The DA is correct in its argument that the proposed VAT increase would be a hard one to swallow, especially for an already hard-pressed majority of the population grappling with the high cost of living.
A VAT increase adds more misery to their plight, something the ANC has continuously demonstrated over the years it does not care about.
University of Free State academics Dr Ambrosé du Plessis and Terrance Molobela correctly assess that VAT might raise substantial sums, but it does little to stimulate the economy or promote productivity, both of which are sorely needed to grow South Africa’s GDP and reverse the country’s economic downturn.
For its part, the DA rejects the current proposed budget on the basis that it is not pro-poor and will cause more damage than doing good.
Such strong words suggest that South Africans should expect something dramatic between now and the time the parties in Parliament are expected to either adopt or reject the proposal.
Our previous editorials have correctly questioned the DA’s role in the GNU, boldly characterising its participation as a bystander.
It has done very little if anything to dispel that while the ANC continues with business as usual.
The proposed budget is another test for the DA to find its voice. What it does next will determine whether it wants to continue being the GNU's chief spokesperson or an influential partner that has sights on delivering on the promises it made to the voters.
So long as they remain part of the GNU, they will be seen as being in support of the decisions this government makes regardless of their opposition.
Voters, just like they did with the ANC, will punish them at the polls.