[South Africa] ANC and Democratic Alliance yet to reach budget pact

South Africa's two biggest political parties, the African National Congress (ANC) and the Democratic Alliance (DA), continued to struggle to reach an agreement to pass the budget on April 1, hours before a key parliamentary committee was set to debate it, Reuters reports.

The budget has proved the biggest hurdle yet for the broad coalition government. The coalition was formed in 2024 after the ANC lost its parliamentary majority for the first time since helping end apartheid in 1994.

Negotiations between the ANC and the Democratic Alliance have stretched over weeks. The ANC reportedly needs the support of at least one other big party to pass the budget, and the DA has sought more influence over policymaking.

"Last night, the ANC refused to finalise an agreement on growth and spending reforms, imperilling the (coalition)," Democratic Alliance party leader John Steenhuisen said in a Twitter post. "The DA will oppose the budget unless and until a written agreement is reached."

The ANC and DA are ideologically opposed on multiple issues, including education, land and health legislation, but had so far overcome occasional disputes to govern together.

The budget for the fiscal year starting on April 1 was reportedly set to be presented in February. However, it was postponed as a result of disagreements in the coalition over a plan to increase VAT by two percentage points.

Source: Reuters

(Quote via original reporting)

South Africa's two biggest political parties, the African National Congress (ANC) and the Democratic Alliance (DA), continued to struggle to reach an agreement to pass the budget on April 1, hours before a key parliamentary committee was set to debate it, Reuters reports.

The budget has proved the biggest hurdle yet for the broad coalition government. The coalition was formed in 2024 after the ANC lost its parliamentary majority for the first time since helping end apartheid in 1994.

Negotiations between the ANC and the Democratic Alliance have stretched over weeks. The ANC reportedly needs the support of at least one other big party to pass the budget, and the DA has sought more influence over policymaking.

"Last night, the ANC refused to finalise an agreement on growth and spending reforms, imperilling the (coalition)," Democratic Alliance party leader John Steenhuisen said in a Twitter post. "The DA will oppose the budget unless and until a written agreement is reached."

The ANC and DA are ideologically opposed on multiple issues, including education, land and health legislation, but had so far overcome occasional disputes to govern together.

The budget for the fiscal year starting on April 1 was reportedly set to be presented in February. However, it was postponed as a result of disagreements in the coalition over a plan to increase VAT by two percentage points.

Source: Reuters

(Quote via original reporting)