DA-ANC power struggle puts GNU at risk

'Rejection of the Budget will mean the end of the present government'

- MASHUDU SADIKE

THE DA and the ANC are locked in a fierce battle over the passing of the Budget, with the future of the Government of National Unity (GNU) hanging precariously in the balance.

A day before the Budget was due to be voted on in the National Assembly on Wednesday, at the heart of the dispute is the proposed 0.5% VAT increase, which the DA vehemently opposes.

The party has demanded that the ANC repeal the National Health Insurance (NHI), Basic Education Laws Amendment (Bela), and Expropriation Acts in exchange for its support of the Budget.

However, according to sources close to the ANC, the party did not budge on the DA's proposal, but was still engaging with it to have the VAT increase temporarily scrapped while they proceed with the negotiations.

The source added that the ANC, which is the largest party within the GNU, followed by the DA, was considering not imposing a VAT increase a day before the Budget is due to be voted on.

ANC secretary-general Fikile Mbalula, while briefing the media following his party's National Executive Committee (NEC) meeting over the weekend, warned that if no agreement is reached, the GNU may have to be reconfigured.