New 2025 budget already in big trouble

Democratic Alliance (DA) leader John Steenhuisen has stated, in no uncertain terms, that his party will not support the revised 2025 Budget.

Following the tabling of the budget by Finance Minister Enoch Godongwana on Wednesday (12 March), Steenhuisen put out a statement, calling it “chaotic” and tax-focused.

For the budget to be put into effect, a majority of parliamentarians need to vote in support of it. In the past, the ANC enjoyed a majority in government, so this was never an issue.

However, following its historic loss in the 2024 National Elections, the party no longer has the numbers.

Since the election, South Africa has been governed by a Government of National Unity (GNU), which comprises the ANC, the DA, the Patriotic Alliance (PA), Inkatha Freedom Party (IFP), Good Party, Pan Africanist Congress of Azania, Freedom Front Plus, United Democratic Movement, Al Jama-ah and Rise Mzansi.

Combined, these ten parties represent 287 seats in parliament, giving the GNU a comfortable majority.

However, without the DA’s support for the budget, the ANC would lack a majority—even with full support from all other GNU parties.

This would mean that it would have to rely on non-GNU parties to get the budget over the finish line.

Steenhuisen said that the DA made it clear to the ANC through the GNU processes that the party would not support any budget that increased taxes.

“We will not support any increase in taxes unless those increases are temporary, and the ANC agrees to a series of major reforms that would grow the economy, create jobs, reduce waste, and bring down taxes within three years,” he said.

Ultimately, the revised budget tabled on Wednesday saw some significant tax measures, including hiking VAT by 1%pt over the next two years, as well as no inflation relief for taxpayers.

Steenhuisen said that the ANC refused to agree to the DA’s suggestions and instead moved ahead with tax hikes that will likely become permanent.

“As a consequence, the people of South Africa will be poorer, and the future of the government is at risk,” he said.

The DA leader implied that negotiations with the ANC through GNU processes were fruitless, saying that the once-governing party “has still not accepted the outcome of the general election and cannot bring itself to share power”.

“Unfortunately, the ANC is prepared to sacrifice the South African people and risk the economic future of the country rather than accept it no longer has majority support,” he said.

Steenhuisen stressed that the “ANC VAT budget” doesn’t have a majority, and the DA won’t give it one.

“It is now up to the ANC to fix the mess it has created,” he said.

The DA’s response to the budget does not appear to be unexpected, with minister in the presidency Khumbudzo Ntshavheni telling BusinessLive earlier on Wednesday that any challenges to the budget can still be discussed at a later stage.

“The minister of finance will finalise and present the budget. It will be tabled, discussed and, if there is a need, sent back,” she said.