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Vol 66 No 8

Published 18th April 2025


South Africa

The budget fight threatening to shatter the coalition

Both the ANC’s Ramaphosa and the DA’s Steenhuisen are fighting to preserve power-sharing – but for vastly different reasons

When Finance Minister Enoch Godongwana failed to secure backing within the Government of National Unity (GNU) on 12 March for his proposal to raise VAT from 15% to 17% to finance this year’s budget, he handed a powerful weapon to the centre-right Democratic Alliance (DA). Godongwana, an African National Congress (ANC) stalwart, faced opposition to his VAT hike across the political spectrum – from the extreme right to the two main populist parties, the Economic Freedom Fighters (EFF) and the uMkhonto weSizwe (MK) party. That should have allowed the DA to lead parliamentary opposition to Godongwana’s plan, but it failed to seize the opportunity.

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