By Lehlohonolo Lehana.
The African National Congress (ANC) and the Democratic Alliance (DA) are close to finding common ground on the national budget before the deadline to pass the fiscal framework.
Both parties have been at an impasse over Finance Minister Enoch Godongwana’s proposal to raise value-added tax. The DA has threatened to withhold its support for the budget as it moves through parliament unless it has more of a say over economic policy.
Talks between the parties broke down on Friday following the ANC’s refusal to accede to the DA’s demands on a range of economic matters.
These included greater DA influence and control over aspects of economic policy and decision-making, hard deadlines for implementation of a range of what the party believes are pro-growth reforms, and no increase in the VAT rate.
DA spokesperson Karabo Khakhau said there had been no formal communication from her leadership, but “from what I’ve been told, there has been progress in closing the deal.”
In a bid to get support for the budget vote, Fullview learnt that the ANC has been knocking on the doors of various political parties including the Economic Freedom Fighters (EFF), BuildOneSA, and the ActionSA .
President Cyril Ramaphosa also said that he’s confident the coalition partners “can develop a shared approach to unlock inclusive growth, job creation and a secure fiscal future.”
The rand strengthened 0.8% to R18.28 per dollar by 7:47 a.m. in Johannesburg, reversing some of the loss it suffered on Friday, when the DA escalated its dispute with the ANC over the budget.
Parliament’s Standing Committee on Finance is finalising its deliberations on the fiscal framework on Monday and will vote on it on Tuesday.