Source: Africa Publicity
In a shocking turn of events, South Africa’s Finance Minister Enoch Godongwana has been forced to postpone the presentation of the national budget due to sharp disagreements within the coalition government. The contentious issue: a proposed 2% increase in value-added-tax (VAT) that would have raised prices of goods, exacerbating the country’s cost-of-living crisis.
The Democratic Alliance (DA), the second-largest party in the coalition, vehemently opposed the VAT hike, arguing it would “break the back of our economy”. The ANC’s other coalition partners, including the Freedom Front Plus, also expressed discontent, claiming they were only informed of the proposed hike before Godongwana was set to table the budget.
This unprecedented postponement has sent shockwaves through South Africa, with the currency plummeting against the US dollar as markets reacted negatively to the news. The opposition Economic Freedom Fighters (EFF) condemned the delay, labeling it a “symptom of weak, indecisive, and opportunistic governance”.
However, the DA hailed the postponement as a “victory,” pledging to push for a budget that promotes growth and employment. Godongwana has announced that the budget will now be tabled on March 12, following further discussions to iron out differences.
As South Africa grapples with its economic challenges, one thing is clear: the road to a balanced budget is paved with controversy and compromise.
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