Budget disputes highlight DA's diminishing role in South Africa's GNU, says analyst

Political tensions rise as DA struggles to show its influence in the Government of National Unity, opposing the VAT hike while unable to stop key legislation.

Political tensions rise as DA struggles to show its influence in the Government of National Unity, opposing the VAT hike while unable to stop key legislation.

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Published Apr 1, 2025

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A political analyst suggests that the Democratic Alliance (DA), a member of the Government of National Unity (GNU), is struggling to demonstrate its meaningful participation as it opposes the 0.5% VAT hike, despite its inability to halt the BELA BILL and the Expropriation Act.

“The DA is having difficulty showing its constituency, that it can make a meaningful difference in decision-making,” said Professor Theo Neethling, from the University of Free State’s Department of Political Studies and governance.

“However, the ANC is excluding the DA from the economic policy-making as far as possible, which is causing a lot of frustration on the side of the DA.”

Neethling comments come amid ongoing tensions between the ANC and DA over the national budget.

The DA has strongly opposed the controversial 0.5% VAT increase, which has sparked disputes between the two parties.

Earlier, IOL News reported that the ANC warned the collapse of budget talks could lead to reconfiguration of the GNU, particularly if political scoring is seen as influencing the budget process.

ANC secretary-general Fikile Mbalula said the party was committed to the GNU, but acknowledged that internal squabbles could prompt a reassessment of its structure.

The ANC has engaged with various political parties, both within and outside the Government of National Unity (GNU), including the Democratic Alliance (DA), to garner support for the budget. These parties are scheduled to convene on Wednesday to discuss and vote on the budget.

“If you engage with these processes based on political scoring, it may lead to situations in which the GNU itself, at the ultimate, given the outcome, has to be reconfigured.

“The ANC is committed to the GNU with all its partners, but the maturity of these partners is very important for the GNU,” he said.

Despite the ongoing talks, the DA leader John Steenhuisen said the ANC refused to finalise an agreement on growth and spending reforms, which, he argued, jeopardised the stability of the GNU.

Steenhuisen stated that the DA will oppose the budget unless and until a written agreement is reached.

In response, Mbalula urged the DA to reconsider its stance and focus on the practical realities of governance.

Meanwhile, Neethling warned that if the DA chose to leave the GNU, it would face significant consequences.

“As Mbalula rightly pointed out, the DA will lose their Cabinet positions, including the minister and deputy minister, as well as positions in Parliament, such as the deputy speaker and chairs of Parliamentary Committees. The implications would be substantial,” he said.

He noted that if the ANC continues with the budget votes without the ANC, it could create chaos.

“This will undoubtedly weaken the coalition within the Government of National Unity, and crease further conflict.”

Neethling added that while the DA might consider leaving the GNU, it would be aware of the consequences, including the risk of ceding decision-making power to more radical parties.

He suggested that the Economic Freedom Fighters (EFF) could align with the ANC, though he cautioned that EFF leader Julius Malema would likely seek to assert significant control in such an arrangement.

“The EFF might come on board, that is a possibility. But if think the ANC is also aware that if that happens, Julius Malema will certainly not be an easy partner to take on board and he will certainly make decisions for his party. Things are difficult from whatever side you look at it.”

The ANC currently lacks the seats necessary to pass the budget alone. With 159 seats in Parliament, it needs 42 additional votes to secure approval.

The DA, as the largest partner in the GNU, holds a significant number of seats, 87 seats.

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