Talks between the ANC and DA over budget disagreements continued yesterday, with both parties reaffirming their commitment to the government of national unity (GNU).

The Witness reports that the two parties, which also held talks on Friday, differ on aspects of the budget presented by Finance Minister Enoch Godongwana on March 12.

The DA, which views the Expropriation Act 13 of 2024 in its current form as a threat to investment, is also calling for the withdrawal of the 0.5 percentage point VAT increase announced in Godongwana’s budget.

Two weeks ago, the DA sent the ANC a letter of demands, including issues related to the National Health Insurance and the government’s localisation policy.

However, the ANC maintains that the DA’s demands should not form part of budget negotiations, as some are political matters beyond the budget’s scope.

Parties vow to uphold government unity

Differences between the ANC and DA have fuelled speculation that their co-operation will not last. However, both parties assured the public over the weekend that they remain committed to the GNU, which also includes the IFP, PAC, UDM and FF+.

While DA national spokesperson Willie Aucamp said a deal with the ANC had not yet been reached, he confirmed that the DA was committed to resolving the impasse.

“The DA is still open to negotiations — there are conversations going on as we speak,” he said.

Speaking on the sidelines of the ANC national executive committee meeting in Johannesburg, ANC national spokesperson Mahlengi Bhengu-Motsiri said differences with the DA would not lead to the collapse of the GNU.

“It doesn’t spell the end of the relationship. We are not in this relationship because we want to be, but because it is in the nation’s interest. We are not pronouncing on dissolving the GNU; that resolution will not come from us,” she said.

The IFP, which is also in coalition with the ANC in the KZN government, has indicated it will support the budget, but with conditions.

“The first condition is that the VAT increase must be temporary and should be removed as soon as more viable economic income streams are secured.

“Secondly, President Cyril Ramaphosa is expected to call an urgent Cabinet meeting to discuss measures for economic growth and to review spending patterns across all departments,” IFP president Velenkosini Hlabisa said.

Godongwana’s budget will be brought before the National Assembly’s standing committee on finance on Wednesday, which has the power to approve, amend or reject it.

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