By Lehlohonolo Lehana.
The finance committee in parliament has adopted finance minister’s fiscal framework, setting the scene for the less contentious adoption in the National Assembly (NA).
A fiscal framework is the blueprint of the national budget. It includes revenue projections, expenditure estimates, borrowing needs and deficit implications.
This was Enoch Godongwana’s third attempt to get the National Budget passed after an outcry over two proposals to increase Value Added Tax (VAT).
Godongwana initially proposed raising VAT by two percentage points in his first iteration of the budget in February, but halved the increase three weeks later after encountering political opposition. He scrapped it completely in his latest plan that was unveiled last month, and proposed cutting spending and increasing fuel levies instead.
The tussle over the budget strained the relations within the so-called government of national unity, and its resolution has eased concern among investors and helped fuel a rally in the rand and the nation’s bonds.
The Economic Freedom Fighters (EFF) remains opposed to the higher fuel taxes, though the High Court on Tuesday dismissed the party’s lawsuit aimed at reversing them.
There’s been a delay to the start of Wednesday’s parliamentary meeting, which was expected to adopt a report on the fiscal framework that underpins the budget.
Parliamentarians complained about the small venue and the inadequate seating for a joint meeting of two finance committees to consider the important report.
During a joint meeting with Standing Committee on Finance, and the Select Committee on Finance, Members of Parliament adopted the document that establishes economic policy and revenue projections and sets the overall limits for government spending.
The process, which took three hours on Wednesday, was not without its issues, with some members arguing that the process was flawed and that not everyone was able to make their voice heard.
Six MPs, including standing committee on finance chair Joe Maswanganyi, voted to adopt the report. Three MPs voted against: EFF MP Omphile Maotwe, MK Party MP Brian Molefe and MK Party MP Des van Rooyen.
The budget will be put to a house vote next Wednesday, with African National Congress (ANC) which has 159 of the 400 seats in the National Assembly, the DA with 87 and uMkhonto weSizwe Party 59 and the EFF 39.