Fears over SA's Budget

CONCERN is spreading about whether a consensus will be reached for Finance Minister Enoch Godongwana's National Budget to be passed as the deadline on Wednesday looms. The ANC and the Democratic Alliance remain at odds over a tabled 0.5% Value Added Tax (VAT) increase on March 12. Labour federation Cosatu, economists, Action SA, and civil society are concerned about the impact of the Budget not being passed.

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COSATU'S parliamentary counsellor, Matthew Parks, said that it was critical that Parliament passed the Budget.

"We cannot afford for this not to happen as it would then threaten the state's ability to fulfil its constitutional obligations, including providing social grants and public services. This needs to happen on April 2, according to the legislative framework." Parks said that there was some space in case this didn't happen, but South Africa would not want to enter such dangerous territory.

"There are many progressive provisions for which Cosatu has campaigned, included in the Budget to rebuild the state, stimulate growth, create hubs, protect the poor and improve tax collection. We are opposed to VAT and the failure to adjust personal income tax brackets and have tabled progressive revenue and expenditure alternatives to this to Parliament and Treasury," he said.

Athol Trollip MP, ActionSA parliamentary leader, said the ongoing deadlock in passing the Budget was unprecedented and an indictment of a Government of National Unity that lacked a coherent plan.