By Jason Felix.
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The ANC’s parliamentary caucus is confident that Finance Minister Enoch Godongwana will deliver a balanced Budget that’s “appreciative of the difficult choices that need to be made”.
According to ANC chief whip Mdumiseni Ntuli, successful engagements have been held within the ANC and with government of national unity (GNU) partners.
In a statement on Wednesday, Ntuli said: “Following successive constructive engagements within the ANC and between the GNU partners, the caucus is confident that Minister [Enoch] Godongwana will table a Budget that is balanced and appreciative of the difficult choices that need to be made in a low economic growth environment.
“The ANC caucus believes that the Budget is an essential instrument for redistributing wealth and income, advancing fundamental transformation, and ensuring the realisation of the socio-economic rights enshrined in our Constitution.”
Ntuli added that the expectation was that the Budget would address the core priorities of the 7th administration highlighted by President Cyril Ramaphosa’s State of the Nation Address.
“The ANC further expects sufficient resources to be allocated to measures aimed at stabilising the economy, supporting growth and development, reducing inequality, investing in human capital, tackling the high cost of living and creating a more inclusive and sustainable economic system. We are confident that the minister will continue to allocate resources to alleviate poverty and support the poor and the most vulnerable in our society,” he said.
Despite Ntuli’s optimism, the Budget is likely to face obstacles in the parliamentary process.
Within 16 days of the Budget being tabled, the finance committees of both Houses must prepare a report accepting or amending the fiscal framework and revenue proposals. The report must be adopted by both the National Assembly and the National Council of Provinces.
The ANC does not have a majority in either committee or House and requires the support of one of the four biggest parties in Parliament to pass the fiscal framework.
The MK Party and the EFF have indicated an intention to oppose a VAT hike. The DA said the same but it is likely to accept an increase of a smaller magnitude in return for concessions on other things.
By Wednesday morning, hours before the Budget was scheduled to be tabled, Cabinet met to deliberate.