Budget deadlock continues in joint Parliament finance committee meeting

CAPE TOWN - The budget deadlock continues playing itself out in the joint meeting of finance of Parliament’s finance committees on Tuesday, as parties continue to differ on key sections of the budget.

Members of Parliament (MPs) from the committees expressed their views on the committee’s report, which will either accept or reject the fiscal framework, that includes the value-added tax (VAT) increase and tax proposals.

But an attempt by the Democratic Alliance (DA) to amend the framework before the discussion could even start was quickly shut down after parties raised their opposition.

Parliament’s finance committees have until the end of Tuesday’s meeting to get the fiscal framework and revenue proposals ready for the National Assembly and National Council of Provinces (NCOP) to adopt.

But that has hit a bit of a snag as they continue to bicker over not just the VAT proposal but even the actual wording in the committee’s report.

The Economic Freedom Fighter (EFF)’s Sinawo Thambo disagreed with characterisation of the National Treasury’s submission.

“So, it says National Treasury submitted a comprehensive response to the committee addressing submissions from stakeholders. I think we must just say they submitted a response. It think its very subjective to say it was comprehensive.”

The DA's finance spokesperson, Mark Burke, called for the framework to be amended before it goes to the house on Wednesday.

“The intention is to protect South Africans from VAT hikes. The DA remains firmly opposed to any VAT increases. We need to take those VAT hikes out.”

After discussions, members of the committees from the National Assembly and NCOP will then vote separately on the report with or without amendments. 

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