ANC NWC opens talks with parties in and outside GNU to resolve budget impasse

JOHANNESBURG - The African National Congress’s (ANC) national working committee (NWC) has resolved to reopen negotiations with parties within and outside the Government of National Unity (GNU) to resolve the budget impasse.

The governing coalition has been divided, with the Democratic Alliance (DA) and Freedom Front (FF) Plus rejecting Finance Minister Enoch Godongwana’s fiscal policy framework due to the 0.5% value-added tax (VAT) increase.

The DA rejected last week’s approval of the fiscal framework, saying it was not procedural and subsequently approached the Western Cape High Court, saying it was non-compliant with the standing rules of Parliament.

ALSO READ: Maimane hopes parties can find 'workable solution' on budget after meeting ANC

ANC secretary general Fikile Mbalula presented outcomes of the NWC meeting at its Luthuli House headquarters on Tuesday.

Mbalula says it's time to go back to the drawing board.

"The working committee resolves that we will reset the button to engage with all political parties in the GNU and those that are not in the GNU to address the impasse with regards to the budget. We intend to do that within the period of five days."

Mbalula explains what “resetting the button” means.

"We have agreed to reset the button by way of ensuring that this GNU going forward is governed by rules not just the statement of intent."