Finance Minister Enoch Godongwana faces political headache

BBC News, Johannesburg

South Africa entered an unknown water after the deep divisions of the coalition government on the recently presented national budget after a month delay.
This is the viewpoint of analysts after Finance Minister Inuk Jodingwana’s budget raised a violent reaction from various circles, including The main partners in the coalition government reject his proposals for the second time.
The African National Congress (ANC) formed the government of national unity (GNU) with nine other parties after it lost its parliamentary majority in the elections last year.
Without supporting its larger partner in the alliance, the Democratic Alliance (DA), it will fail to pass the budget unless it rethinks its controversial policies or gets the support of the largest opposition parties.
Godjwana was forced The postponement of his budget was postponed last month After fierce resistance to his plan to raise the value -added tax (value -added tax), which would have witnessed the high prices of goods at a time when South Africa was difficult for the living crisis.
This delay sent shock waves across South Africa at the time, as it was the first time that this has happened since the end of the white intelligence base in 1994.
After a series of meetings between the parties in the government, Godngwana returned on Wednesday to present what he called a “bold and practical” budget.
In his revised budget, the minister tried to satisfy his GNU partners by announcing an increase in value -added tax, to implement it over two years.
Godngwana initially suggested increasing the value -added tax from 15 % to 17 %, but he now suggested raising it to 16 % in two phases.
The minister says that increasing taxes is necessary to address “the pressures of continuous spending in health, education, transportation and security.”
“they [other parties] You should choose – Do we close schools, hospitals or clinics? They have to take this choice. Do we divorce people? This is the option that we have to take and this is not a good option to take. “
The minister added that he chose to target value -added tax instead of personal taxes and companies, as the last two will generate less revenues with “investment harm, creating jobs and economic growth.”

The revised budget of Jodingwana has the support of his party, the African National Congress Party, but it failed to appease Da, which she said “will not support any tax increase, unless these increases are temporary and the African National Congress Party agreed on a series of major reforms” that will grow the economy, reduce waste and create job opportunities within the next three years.
The dilemma has distorted the reputation of President Kirill Ramavusa, which was greatly equipped as a deals maker, with only one of the coalition partners – the Small National Alliance (PA) – which supports the budget.
The latest conflict highlights the deep divisions of the fragile coalition government, as the two largest parties have closed centuries on the main issues since its formation.
This includes the controversial land law, which allows the seizure of private property by the government in some cases, without any compensation to their owners.
DA defies the law in court, on the pretext that it is unconstitutional and threatens property rights in South Africa.
The two largest opposition parties – former President Jacob Zuma Omkhonto and Yozoy (MK) and economic freedom fighters in Julima Malima – also rejected that the proposed tax increases would reach the most difficult poor.
This leaves the African National Congress Party in a difficult position, as it needs at least one of the three largest parties to pass the budget.
Analyst at the University of Witz in South Africa, Madoyoko, says that the budget is left to have left South Africa in “immovable water”.
It tells the BBC that the role of Parliament will now be “very embarrassed” because before, change or reject the budget.
While in the past, the African National Congress Party has always been able to push its policies, this is no longer the case.
This will conclude a deal with other parties or the risk of seeing the budget that is voted – something that may lead to the collapse of the coalition government.

Mrs. Madonco criticized Judongwana’s decision to take the “most magical option” by proposing an increase in value -added tax, which will affect all the population, instead of targeting the richest part of the population by providing a “wealth tax” to them.
Another expert, Adrian Savil, said that the budget was “foolish”, as the minister repeated many old promises to enhance economic growth and create job opportunities in a country where unemployment stands by more than 30 %.
These are words. Give us the numbers [and] Tell us what you intend to do even when we meet again within a year, we know if you have succeeded or if you have fallen. “
Godenjwana has long been seen as a fixed pair of hands, which respects both the business sector and the trade union movement.
But his credibility took ways after the budget crisis. He is now facing the challenge of saving its reputation by directing the budget through Parliament – or people will increase in the extent of its suitability for this position.

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2025-03-13 08:34:00