Steenhuisen to announce DA's decision on backing national budget

CAPE TOWN - Democratic Alliance (DA) leader John Steenhuisen said he would announce on Tuesday morning whether his party will back the national budget, which proposes a 0.5 percent value-added tax (VAT) increase from 1 May.

In February, the DA and other GNU partners' refusal to back Finance Minister Enoch Godongwana’s original two percent VAT increase proposal scuppered the tabling of the budget for the first time since democracy.

With the DA the kingmaker in the GNU partnership to get the budget over the line without opposition support, the party's been driving a hard bargain to get its economic reform proposals included in the budget framework instead of a VAT increase.

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Playing hardball or waiting to see who blinks first? 

Either way, this year’s votes on the Treasury’s money bills could come down to the wire. 

On Tuesday, the finance committee will finalise its report on the fiscal framework and revenue proposals in preparation for it to be tabled and voted on in the National Assembly on Wednesday. 

Although not a bill, the framework establishes economic policy and revenue projections and sets the limit for government spending.

The framework sets the stage for the House to consider the division of revenue and appropriations bills that will have to be passed in the coming weeks.

The African National Congress (ANC)'s refusal to accept some of the DA's budget proposals has forced the party to shop around for votes from smaller parties in recent days as a back-up plan.

Steenhuisen said he would reveal the outcome of the negotiations and its implications for the budget and the GNU at Parliament on Tuesday morning.