South Africa’s fragile coalition government faces a critical test following a fierce dispute over the national budget, exposing deep rifts between the ruling African National Congress (ANC) and its main coalition partner, the Democratic Alliance (DA). The DA, a centre-right party, rejected the ANC-led fiscal framework citing opposition to a proposed VAT increase and calling for sweeping spending cuts across government departments.
The ANC, which identifies as centre-left, refused what it termed an “austerity budget,” instead rallying support from smaller parties to narrowly pass the fiscal framework in parliament by 194 votes to 182. The DA has since challenged the outcome in court, labelling the vote “procedurally flawed” and signaling a potential withdrawal from the coalition, officially known as the Government of National Unity (GNU).
DA federal chair Helen Zille emphasized the need for power-sharing and compromise, accusing the ANC of unilateral decision-making. Meanwhile, ANC parliamentary chief whip Mdumiseni Ntuli accused the DA of “betrayal,” suggesting their role in the coalition may be over. President Cyril Ramaphosa’s spokesperson further questioned the DA’s legitimacy within government, saying it cannot oppose a budget it is part of implementing.
The DA found itself unusually aligned with populist opposition forces the Economic Freedom Fighters (EFF) and Jacob Zuma’s uMkhonto weSizwe (MK) all united against the VAT hike, arguing it would disproportionately affect the poor. This unusual alliance underlines the growing dissatisfaction with the ANC’s fiscal policies.
Despite this rift, the ANC garnered enough backing from smaller parties like ActionSA and the Inkatha Freedom Party (IFP), which had previously aligned with the DA. ActionSA claimed it secured an agreement with the ANC to reconsider the VAT increase in subsequent budget stages.
With the economy struggling, unemployment exceeding 30%, and new U.S. tariffs threatening trade, the urgency for political unity is greater than ever. As Wits University’s Professor William Gumede noted, the DA must now decide if this budget dispute is a breaking point or merely another step in a rocky coalition journey. For now, South Africa’s GNU remains intact but its future hangs in the balance.
