By Lehlohonolo Lehana.
The Democratic Alliance (DA) has cancelled its media briefing on budget negotiations which was set to take place at 8:30am this morning in Cape Town.
At the centre of the clash is finance minister Enoch Godongwana’s VAT rate increase in the budget, tabled two weeks ago, which has become a battleground for competing visions of SA’s economic recovery.
Both ANC and DA held intense talks behind closed doors, which stretched late into Sunday night over the fiscal framework before a parliamentary vote on Wednesday.
Fullview understands that the ANC has refused 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 leader John Steenhuisen, posted on X on Tuesday morning that its partner’s refusal to finalise an agreement on growth and spending reforms was jeopardising the Government of National Unity (GNU).
Steehuisen also said that his party would oppose the budget unless a written agreement was reached.
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 has expressed confidence that the budget will still be approved, regardless of the opposition from the DA.
Parliament’s Standing Committee on Finance is finalising its deliberations on the fiscal framework and will vote on it on Tuesday. The process of approving other budget bills is expected to continue through May.