Minister of Finance Enoch Godongwana will return to Parliament to table a revised budget after coalition partners could not reach a consensus. Picture: Phando Jikelo / Parliament of SA
Last week’s postponement of the tabling of the budget for the 2025/26 financial year has underscored significant leadership deficiencies within the Government of National Unity (GNU).
Political analysts have attributed the postponement to the lack of consultation among coalition partners, a move that marked an embarrassing chapter in the coalition.
Unisa political science’s Professor Dirk Kotze said had there been consultation among all members of the coalition when the budget was prepared, the postponement could have been avoided.
“That clearly is something that did not take place especially among the ministers,” Kotze said.
He noted that in the past when budget was prepared, mainly by officials of the National Treasury and the directors-general of different departments, ministers got involved in the budget process at the latter stages of the process.
“Communication between officials and ministers was not as it should be and among minister also,” Kotze said.
Political analyst Professor Sipho Seepe echoed the same sentiments that he incident was wake up call for the ANC that it was no longer business as usual.
“It was embarrassment of the president and country and wasting so much time to come and hear the budget that never was,” he said.
The Cabinet was briefed fully on the budget hours before Finance Minister Enoch Godongwana was to table his proposals in the joint sitting of Parliament.
There had already been speculation in the media about a VAT increase, something the DA warned that it would not support.
Briefing journalists, Godongwana said it was the first time he engaged with the media prior to meeting his colleagues.
“I am still going to Cabinet – nine political parties and there is local government elections. All those things will play themselves out. I don’t know what the Cabinet will say,” he said.
At the meeting arranged by President Cyril Ramaphosa for the brief, leaders of GNU political parties, DA leader John Steenhuisen, reportedly told Godongwana his party would not support the budget.
In the Cabinet meeting, all parties raised concerns with the budget, particularly the increase in VAT.
IFP spokesperson Mkhuleko Hlengwa said his party did not support a proposed 2% increase in VAT.
“This position was strongly conveyed in Cabinet,” Hlengwa said.
GOOD Party secretary-general Brett Herron said the GNU parties had not been adequately consulted before the National Treasury presented the proposed budget to the political parties leaders’ forum.
“Coalition governing is about seeking consensus. National Treasury needs to learn that it is not business as usual,” Heron said.
This took place amid some reports suggesting Cabinet was not informed of the VAT increase, but Godongwana dismissed this.
In his response, he said the annual tabling of the budget required deliberation by Cabinet before it was tabled.
He stated that Cabinet was briefed two weeks ago about the budget and Treasury had indicated a move to introduce a tax increase.
“We presented in Cabinet and we said this is the direction we are likely to take and everybody was jittery. We did not put the amount,” he told the media after the postponement.
While noting opposition to tax increases, Godongwana said the issue was how to fund the challenges and priorities of the government.
“Really that is the debate,” he said, adding that Ramaphosa was the one to make policy choices.
Speaking to the media on the sidelines of the G20 minister’s meeting, Ramaphosa defended Godongwana’s proposed tax increase.
“No minister of finance will just willy-nilly raise taxes without getting to a point where they believe that they have no other alternatives,” he said.
Ramaphosa said trade-offs have to be embraced.
“Right now we have limited revenue limits, our revenue as it stands is not able to fund every priority and ambition we have.
“The minister of finance scrounges around to find money; so in the end, as South Africans, we, therefore, need to sit back and say how are we going to get over the budget cuts, how are we going to continue funding all our priorities,” he said.
Seepe said the budget should have been delivered after an agreement was reached.
“You don’t wait until there is an embarrassing spectacle. Any leadership must start to put systems such as end deadlock brake mechanisms. If you have incompetent leadership, this is what you end up with,” he said.
Kotze said the GNU would have to better handle differences among its partners.
“The responsibility lies with Ramaphosa to establish the mechanisms. He is the president of the country and the leader of the GNU,” he said.
Kotze also said Ramaphosa must establish a consultation process on matters of policy within the GNU.
“He must decide when he will decide to consult and whether he wont consult at all. Different parties can in discussion make proposals of how to do it,” he added.
A few months ago, Ramaphosa had to refer the Basic Laws Amendment Bill for consultation before it came into effect after concerns were raised with the new law.
Kotze noted that the administration of former president Thabo Mbeki introduced cluster of ministries and forum of directors-general to allow for engagement to enable ministers to talk to each other.
“Most of the systems, actually I would argue, are in place, but it is just they must be used in a different context now and it is so as there is a coalition government, not a one-party government.”
mayibongwe.maqhina@inl.co.za