Overview
- The ANC-led coalition narrowly passed the national budget in a 194-182 vote, relying on support from ActionSA, a party outside the coalition.
- The Democratic Alliance (DA) voted against the budget, citing opposition to a VAT hike they argue disproportionately impacts the poor, and announced plans to challenge its adoption in court over procedural concerns.
- The Economic Freedom Fighters (EFF) also criticized the budget process and threatened legal action over alleged procedural defects.
- The DA is considering withdrawing from the coalition, accusing the ANC of dominating decision-making and undermining the coalition's shared governance structure.
- South Africa’s currency, the rand, dropped 2% as investor confidence waned, reflecting concerns over the coalition's instability and broader economic pressures.