Parliament’s finance committee approves fiscal framework, revenue proposals underpinning budget
Following two days of deliberations, the African National Congress (ANC), Democratic Alliance (DA) and ActionSA voted in favour of the report.
Department of Finance Minister Enoch Godongwana and Director General Duncan Pieterse during the Joint meeting with Standing Committee on Finance, Select Committee on Finance's Consideration and adoption of the Committee report on the Fiscal Framework and Revenue proposals. Picture: Phando Jikelo / RSA Parliament
CAPE TOWN - Parliament’s standing committee on finance has approved the fiscal framework and revenue proposals that underpin the 2025 budget, setting the scene for the less contentious adoption of its report in the National Assembly than was the case in March.
Following two days of deliberations, the African National Congress (ANC), Democratic Alliance (DA) and ActionSA voted in favour of the report.
However, the uMkhonto weSizwe (MK) Party and Economic Freedom Fighters (EFF) dug in their heels saying the fuel levy is an unnecessary inclusion that will impact the poor.
Wednesday's joint meeting of the finance committees of both houses was far less tense than when it considered an earlier version of the budget framework, which contained a value-added tax (VAT) increase that split the Government of National Unity (GNU).
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However, opposition parties took issue with the increase in the fuel levy, which was included in this third version of the budget tabled by the finance minister two weeks ago.
The MK Party’s Brian Molefe said other means could have been found to raise R4 billion in a R2 trillion budget.
"The fuel levy is regressive and it is not pro-growth, because the fuel levy dampens consumption, expenditure, and it is inflationary as well."
After losing Tuesday’s court case on the matter, the EFF’s Omphile Maotwe made one last appeal for the committee to retract the increase.
"If we can stand up and say we reject the fuel levy, that’s something we can give the people of South Africa."
But with no support to force the finance minister’s hand again, both opposition parties rejected the fiscal framework and the committee’s report, which will be put to a house vote next Wednesday.