ANC optimistic that budget negotiations will produce desired outcomes
However, ANC Secretary General Fikile Mbalula says the Democratic Alliance and Freedom Front Plus that form part of the GNU still haven’t met with the ANC to try and resolve the impasse.
ANC Secretary General Fikile Mbalula (left) and the party's national spokesperson, Mahlengi Bhengu-Motsiri, during a media briefing in Sandton on 10 April 2025. Picture: Alpha Ramushwana/EWN
JOHANNESBURG - The African National Congress (ANC) remains optimistic that negotiations surrounding the budget impasse will produce the desired outcomes, with Secretary General Fikile Mbalula saying talks are progressing well.
The party has been engaging its Government of National Unity (GNU) partners and opposition parties, in an effort to resolve disputes related to the national budget.
A key sticking point has been the 0.5% value-added tax (VAT) increase, which has led several parties to rejecting Finance Minister Enoch Godongwana’s proposals.
Mbalula provided an update on the negotiations during a media briefing held in Sandton on Thursday afternoon.
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Earlier this week, the ANC announced that its pressing the reset button on the GNU to revive negotiations on the budget impasse.
Opposition parties like Build One South Africa and ActionSA met the ANC to find a solution to the disagreements on the budget.
Even though they’re not officially part of the GNU, both parties backed the fiscal framework in Parliament last week.
Mbalula says by next week, a final decision on the budget will be made.
"At the present moment, we are sailing very nicely and that has not been anything that suggests that we may have mayhem."
But Mbalula says the Democratic Alliance and Freedom Front Plus that form part of the GNU still haven’t met with the ANC to try and resolve the impasse.
Furthermore, the ANC says discussions about reconfiguring the GNU will only begin if a political party decides to withdraw from the coalition.
Mbalula confirmed that no talks regarding the restructuring of the GNU have begun.
“Reconfiguration will be answered filly if a political party or two walk away. One party walking away from the GNU does not mean it will collapse. It means you then engage in a discussion of reconfiguration.”