The passage of the 2025 national budget in Parliament has placed the Government of National Unity (GNU) under intense scrutiny, raising questions about its stability. The Democratic Alliance (DA) has announced legal action to challenge the process.
The fiscal framework was approved on Wednesday afternoon, backed by the African National Congress (ANC), Inkatha Freedom Party (IFP), Patriotic Alliance, and ActionSA. However, the DA, Economic Freedom Fighters (EFF), and the MK Party opposed the motion. No abstentions were recorded.
A key point of contention was the proposed 0.5% increase in Value-Added Tax (VAT), which became a sticking point in negotiations between the ANC and the DA within the GNU.
DA, EFF Challenge Budget Process
DA leader John Steenhuisen has condemned the manner in which the budget was passed, calling it unconstitutional.
"Legal action is already underway to challenge the committee proceedings and the legality of today's sitting. Voters must understand the implications—ActionSA did not secure a deal. VAT will take effect on May 1 unless successfully challenged in court," he stated.
The EFF has also indicated it is consulting legal experts on the matter.
ActionSA Defends Its Position
Meanwhile, ActionSA's Athol Trollip defended his party’s approach, explaining that rather than pushing for a complete overhaul of the fiscal framework—which would have required reworking the entire budget—they opted to recommend changes.
"We believe the fiscal gap can be addressed without increasing VAT. Finance Minister Enoch Godongwana and the South African Revenue Service have indicated that a VAT hike is unnecessary," Trollip said.
He also highlighted the economic impact of delays in finalizing the budget.
"We have given this budget proposal a 30-day period for reconsideration. However, the 42-day delay we’ve already experienced is costing the economy every day," he added.
As legal battles loom and tensions rise within the GNU, the future of the coalition remains uncertain.