The coalition government in South Africa is facing a budget crisis after deep divisions over the national budget.
Finance Minister Enoch Godongwana’s proposal, which includes a VAT increase, has sparked backlash from key coalition partners, particularly the Democratic Alliance.
Without their support, the government risks failing to pass the budget unless it can secure backing from opposition parties.
Mr. Godongwana, forced to delay his original budget last month due to resistance, returned on Wednesday with a revised proposal, offering a reduced VAT increase over two years.
He argued that the tax hike is necessary to address spending pressures in critical sectors like health and education.
However, the DA remains opposed, demanding significant economic reforms before agreeing to any tax hikes. The deadlock has raised concerns about the stability of the coalition, with experts warning that failure to pass the budget could lead to political turmoil.
With unemployment exceeding 30%, South Africans are awaiting tangible actions to address the country’s ongoing economic struggles.
