Ramaphosa says disputes over Budget Speech do not signal trouble for GNU
This after a row over a proposal to hike Value-Added Tax put National Treasury’s budget on ice at the eleventh hour on Wednesday.
President Cyril Ramaphosa arrives at the Group of 20 Foreign Ministers' Meeting, Nasrec, Johannesburg on February 20. Picture: Sphamandla Dlamini/EWN
JOHANNESBURG - President Cyril Ramaphosa says the disputes over the tabling of the national budget do not signal trouble for the Government of National Unity (GNU).
This after a row over a proposal to hike Value-Added Tax put National Treasury’s budget on ice at the eleventh hour on Wednesday.
It was later revealed that no consensus was reached on an increase of two percentage points to bring VAT to 17 percent, a move largely believed would break the back of consumers.
Ramaphosa addressed the issue of the missed budget on the sidelines of a G20 foreign ministers meeting in the south of Joburg on Thursday.
READ: Ramaphosa says Cabinet meeting where decision to postpone Budget Speech was taken was mature & collegial
As the country battles to meet its revenue targets and the budget deficit continues to keep treasury up at night, a proposal to hike tax almost broke the camel’s back.
Despite treasury's rationale that the revenue from a tax hike could help address shortcomings, some GNU parties had already warned against higher VAT even before budget day.
The revolt and the subsequent decision to postpone the budget speech at the last minute have now been seen as tell tales of what some have labelled as a crisis in government.
But Ramaphosa has dismissed these concerns.
"I know there’s a temptation for people to be heated up, to be hot under the collar and focus on the issue of yesterday and say there was no leadership, there was no consultation. Yes, yesterday happened, but we must move on.”
Ramaphosa said there is a willingness from all parties to find common ground ahead of March 12 when the National Treasury will give the budget speech a second try.