South Africa’s ruling African National Congress (ANC) and the opposition Democratic Alliance (DA) have yet to strike a deal to pass the national budget, just hours before a key parliamentary debate.
The budget has become a major test for the coalition government formed last year after the ANC lost its parliamentary majority for the first time since the end of apartheid in 1994. Despite weeks of negotiations, the ANC still needs the backing of at least one major party, while the DA has demanded greater influence over policy decisions.
“Last night, the ANC refused to finalise an agreement on growth and spending reforms, imperilling the (coalition),” DA leader John Steenhuisen posted on X, warning that his party would block the budget unless a written agreement was secured.
Although the ANC and DA remain divided on key issues like education, land reform, and healthcare, they have so far managed to keep their uneasy alliance intact. ANC chief whip Mdumiseni Ntuli told local broadcaster Newzroom Afrika that the party believed there was “sufficient consensus” to push the budget through its first test in the Standing Committee on Finance.
The National Assembly is expected to review the committee’s recommendations and could vote on them as early as Wednesday. Meanwhile, the DA postponed a scheduled press briefing on the budget talks, and ANC leader Cyril Ramaphosa is set to meet Steenhuisen later in the day.
The budget—initially set for February—was delayed due to coalition disagreements over a proposal to raise value-added tax (VAT) by two percentage points. Finance Minister Enoch Godongwana later proposed a smaller one-point VAT hike phased over two years, but the plan faced swift rejection from most major parties in parliament.