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Wake-up call from Namibia

The Citizen

|

March 18, 2025

This year's budget speech has broken all sorts of political records and, by the look of things, the drama will continue for some time to come.

- Sydney Majoko

Finance Minister Enoch Godongwana and Treasury succeeded in tabling a motion to increase value-added tax (VAT) by one percentage point over the next two years. For it to be implemented, it will have to be agreed to by parliament, which will be tricky for the ANC.

Its current biggest partner by parliamentary seats, the DA, remains opposed to an increase in VAT. So, the ANC has threatened to seek the support it needs outside of its government of national unity (GNU) agreement.

Naturally, because this has been the case for both these partners since day one of the GNU, any disagreement is resolved with threats to leave the GNU, or seek other partners that are not part of the GNU.

The DA also threatens to walk away when it is not with AfriForum on overseas tours to seek support for itself against its unity partner.

This budget impasse has always been coming and how it is resolved will be a huge step of maturity for South Africa's democracy.

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