By Enyichukwu Enemanna
South Africa’s parliament on Wednesday passed the 2025 budget’s fiscal framework and revenue proposals, a development that came after months of political wrangling in the unity government.
Arising from disagreements in the Government of National Unity (GNU), the budget was earlier rejected and reworked twice over plans to raise value-added tax (VAT).
During the passage, a majority of 268 lawmakers in the lower house, including from the two biggest political parties, the African National Congress (ANC) and the Democratic Alliance (DA), voted in favour of the budget’s overall spending limits and revenue-generating measures. Eighty-eight lawmakers voted against, while two abstained.
This is the first time since the post-apartheid era the country is experiencing highly contested budget votes.
The ANC was the majority party in parliament but lost its grip for the first time in the 2024 election, leaving it with a coalition option with the DA and other smaller parties.
The ANC and the DA had been at loggerheads over the budget until the finance minister, Enoch Godongwana, announced a reversal on the proposed VAT hike.
The two parties have more than half of the lawmakers in the 400-member National Assembly.
The finance minister had earlier informed parliament that the tax increases contained in the third version of the budget were aimed at funding social services like health and education.
The DA said it supported the fiscal framework partly because it focused on infrastructure and contained spending reforms.
In the coming days, parliament still needs to approve two other pieces of legislation — the Division of Revenue Bill and the Appropriation Bill, for the budget to be fully passed.
