GNU parties yet to reach agreement on proposed budget, says ANC's Mbalula

JOHANNESBURG - Political parties in the Government of National Unity have yet to reach an agreement on Finance Minister Enoch Godongwana's proposed budget.

African National Congress (ANC) Secretary-General Fikile Mbalula confirmed the stalemate on the sidelines of the party's NEC meeting in Boksburg on Friday, saying that discussions with other political organisations were still ongoing.

Parliament is scheduled to sit on Wednesday to vote for the adoption of the fiscal framework.

ALSO READ:

• Godongwana: DA sent letter to Ramaphosa accepting VAT hike in exchange for scrapping of Expropriation Act

• Treasury defends VAT hike proposal, rejects idea of wealth tax, increasing corporate income tax

• ActionSA formally informs ANC it won’t support budget

The ANC is still working to persuade political parties in Parliament to vote in favour of Godongwana's budget.

This marks the first time the ANC has faced such challenges in passing a budget, as its inability to maintain a majority has required consultations with other parties on various issues.

Mbalula stated that the party was engaging with all organisations in Parliament to secure support for Godongwana’s budget.

"Key to us is the question of the national budget, which is important that the budget must be passed so that government can be finalised going forward."

The proposed increase in value-added tax (VAT) is a key issue that has led most parties to refuse backing the budget.