The ANC-DA led Government of National Unity is on a collision course that threatens to tear apart the less than one year old formation as the April 1 deadline to reach an agreement on the 0.5% Value Added Tax (VAT) increase fast approaches.
Image: Se-Anne Rall / IOL
Despite promising discussions, the long-standing deadlock between the ANC and DA over the national budget remains unresolved.
On Tuesday morning just hours ahead of Parliament's Finance Committee meeting, DA leader, John Steenhuisen took to social media to announce that the ANC refused to finalise an agreement with his party on growth and spending reforms "imperilling the GNU".
"The DA will oppose the budget unless and until a written agreement is reached," he said.
The parties are expected to hold media briefings on Tuesday morning, one at 8:30am. and the other at 9am., to address the budget implications and government matters.
While both parties have expressed optimism about the dialogue, crucial differences persist, casting doubt on the immediate prospects of a breakthrough.
The impasse continues to overshadow the financial planning for the country, with no clear path forward in sight.
In the final stretch ahead of the budget vote, both parties have been engaged in talks to find ways to get the budget through parliament.
IOL reported on Monday that the two leading parties in the GNU are on the verge of coming to an agreement to pass the contentious budget that includes a proposed 0.5% increase in Value Added Tax (VAT).
This comes after sources told IOL that the DA and ANC have agreed on a deal that would give the DA more influence over economic policies going forward.
This led to speculation that the GNU could collapse. However, it now appears the parties are “close” to reaching a deal that would ensure its survival.
However, no deal has been reached yet.
The ANC met with the DA and Freedom Front Plus (FF+) including representatives of the opposition parties, the EFF, MK Party, Build One South Africa (BOSA), and ActionSA.
A finance committee meeting is scheduled for Tuesday, which could provide insight into the potential outcome of the fiscal framework vote.
Several smaller parties within the GNU and Parliament are considering lending their support to the ANC's budget proposal.
The talks are likely to continue until Tuesday night as the deadline for negotiations looms. Parliament is expected to vote on the budget on Wednesday.
kamogelo.moichela@iol.co.za
IOL Politics