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Analyst says DA’s decision to go to courts over budget is correct

todayApril 3, 2025 58

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Political analyst, Professor Sam Koma, says the Democratic Alliance’s (DA) decision to approach the courts and challenge the passing of the national budget is the correct course of action.

Koma explained that both the DA and EFF have flagged a procedural flaw in the adoption of the Fiscal Framework and Revenue Proposals, arguing that it was not in line with the Money Bill Act.

Following a heated debate in the National Assembly, the controversial budget, which includes a VAT hike, was approved yesterday.

A total of 194 parliamentarians voted in favour, while 182 were against it. This occurred despite requests from the DA, EFF, and the official opposition, the MK Party, to have the vote postponed.

A key point of tension within the Government of National Unity (GNU) is the staggered 1% VAT increase, with 0.5% to be implemented this year and another 0.5% in 2026. The increase is set to take effect on May 1.

This decision comes even though Finance Minister Enoch Godongwana mentioned in his budget speech that the government might reconsider next year’s 0.5% VAT hike.

“I’m quite confident that there is a 90% possibility that we might not proceed with it. The revenue outlook for next year is quite positive,” Godongwana said.

Today, the DA filed court papers with the Western Cape High Court to urgently interdict the VAT increase.

Chairperson of the DA’s Federal Council, Helen Zille, confirmed that part of their application is to have the outcome of Parliament’s Joint Finance Committee meeting on Tuesday declared null and void.

 

EFF Leader, Julius Malema, has described the events in the National Assembly yesterday as a political crisis, highlighting the fragility and incoherence of the GNU.

He says the EFF is consulting with its legal team to explore ways to challenge the adoption of the budget, which the party has condemned as anti-poor.

The African National Congress Youth League (ANCYL) has called for the removal of all DA cabinet ministers and deputies following their vote against the adoption of the contentious budget.

ANCYL spokesperson, Zama Khanyase, says the DA, as the ANC’s major GNU partner, has demonstrated a clear pattern of opportunistic and bad-faith negotiations.

She adds that the DA had proposed a 24% reduction in government spending, particularly in social services and infrastructure investment policies that would disproportionately affect the most vulnerable sectors of society.

ActionSA on the other hand has defended its decision to vote with the ANC on the budget, saying their attempts to speak to the DA and the MK Party ahead of the vote fell flat.

Caucus leader, Athol Trollip, says the DA is disingenuous in its posture and its within its right to challenge the budget in court.

Earlier, the DA filed court papers in a bid to stop the implementation of the VAT hike on the 1st of May, saying the budget is unlawful.

Trollip says the DA is playing to the gallery.

ActionSA has also reiterated that it is also against the pending VAT hike and says it has given the ANC 30 days to reconsider the decision.

Veteran economist, Dr Azar Jammine, believe the budget in its current form does very little to promote economic growth and employment in the country.

Jammine says the government should have explored other ways to satisfy the markets. These include cutting government spending, rather than increasing VAT.

Written by: Lindiwe Mabena

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