Steenhuisen says DA won't back Godongwana's budget in its current form

JOHANNESBURG - Democratic Alliance (DA) leader John Steenhuisen said that the party would not support Finance Minister Enoch Godongwana's budget in its current form.

Despite the DA being a member of the Government of National Unity (GNU), the party has expressed dissatisfaction with the proposed budget policy statement.

Godongwana delivered his Budget Speech on Wednesday after weeks of negotiations with GNU partners.

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Steenhuisen said the DA was not willing to accept the increase in value-added tax (VAT).

"We have been clear from the beginning that we don’t believe that VAT increase is the right way to proceed, especially if it is not accompanied by bold economic reforms. If we don't get growth, we're going to be back in October and February next year scrambling around and looking for scraps of money to be able to do what we need to do."

Godongwana announced a half-a-percentage point VAT increase to come into effect this year and another half-a-percentage point next year.

Steenhuisen said there’s still time for GNU partners to find one another.

"There’s still time to talk and negotiate. The fiscal framework is being tabled on the second of April. That’s the first time something is going to be voted on in the House. As we sit here today, this budget has 39% to 40% of the House. It doesn’t have a majority to pass."