By Lehlohonolo Lehana.
The Standing Committee on Finance has adopted the fiscal framework, paving the way for it to be adopted by vote in the National Assembly on Wednesday.
This follows a strained debate in the committee, where parties, including the DA and EFF, opposed the proposed budget and the one percentage point VAT hike over the next two years.
During deliberations, ActionSA proposed eliminating the VAT hike and Treasury’s decision not to adjust tax brackets for inflation, and giving the finance minister Enoch Godongwana 30 days to adjust the budget.
The DA also put forward a proposal to avoid a VAT hike, while cutting expenditure to balance the books.
The ANC threw its support behind ActionSA’s proposal.
However, the party argued that the fiscal framework should be supported at the meeting, provided that the National Treasury adopts and makes the proposed adjustments.
The DA and EFF argued that the framework could not be supported and opposed at the same time.
DA MP Mark Burke said it was “absurd” to support the framework while also proposing to amend it.
Regardless, ActionSA ultimately voted with the ANC to support the framework, with its proposal securing a majority vote.
The ANC welcomed the proposal, and the Inkatha Freedom Party (IFP) agreed to support it. It carried with their collective six votes in the committee, making a vote on the DA’s proposal redundant.
The ANC instead made a deal with Rise Mzansi to allow the parliament’s watchdog standing committee on public accounts, chaired by party leader Songezo Zibi, to oversee a six-month spending review.
In return, the party will vote along with the ANC, IFP, ActionSA and other smaller parties within the unity government on Wednesday.
Joseph Maswanganyi, the chairperson of the standing committee on finance, stressed that the fiscal framework was not amended but that instead the committee had asked the finance minister to come up with alternative revenue proposals.
The distinction is important in terms of the National Assembly’s schedule, because an amendment would have delayed a vote because, in the law, the minister must be given two days to consider it.
A simple majority was needed for the fiscal framework to be adopted by the chamber.
The EFF and uMkhonto weSizwe party did not support the ActionSA proposal and indicated that they would vote against the framework on Wednesday. The numbers will be close, but it is expected that the Good party, the Patriotic Alliance, the United Democratic Movement, Al Jama-ah and the Pan Africanist Congress will vote with the ANC.