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South Africa's Coalition Government Faces Crisis Over Budget Vote

Tensions escalate as coalition partners clash on VAT hike, with opposition parties threatening legal action and questioning government stability.

Members of parliament stand in a makeshift dome after South Africa's Finance Minister Enoch Godongwana's 2025 budget speech was postponed, in Cape Town, South Africa, February 19, 2025. REUTERS/Esa Alexander/File Photo
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A woman walks past a logo of The African National Congress, at Luthuli House, the ANC headquarters in Johannesburg, South Africa, June 5, 2024. REUTERS/Siphiwe Sibeko

Overview

  • The Democratic Alliance (DA) voted against the proposed budget, citing opposition to VAT increases that would burden the poor, and has threatened to challenge its adoption in court.
  • The Economic Freedom Fighters (EFF) are seeking to block the parliamentary budget vote, claiming procedural defects and considering urgent legal action, including an interdict.
  • The African National Congress (ANC) relied on ActionSA, a party outside the coalition, to secure committee approval for the budget, deepening rifts within the coalition.
  • The proposed budget includes a phased VAT increase starting next month, aimed at generating over 15 billion rand annually to fund critical social services like health and education.
  • Finance Minister Enoch Godongwana questioned the DA's ability to remain in the government after voting against the budget, highlighting growing instability in the coalition.