South Africa’s unity government teeters on the brink of collapse after the Democratic Alliance (DA) voted against the national budget on Wednesday, deepening divisions within the fragile coalition.
The DA, the country’s second-largest political party, rejected a proposed tax increase, arguing it would disproportionately harm the poor. The party announced plans to challenge the budget’s adoption in court, further straining its alliance with the ruling African National Congress (ANC).
Leftist opposition party Economic Freedom Fighters (EFF) celebrated the discord. “We are happy that we managed to break this so-called GNU (government of national unity),” said EFF leader Julius Malema. “What is uniting you if you can’t agree on a national budget?”
Finance Minister Enoch Godongwana questioned the DA’s continued role in government. “I don’t think you can vote against a budget and tomorrow want to be part of its implementation,” he said.
The budget proposes a phased Value Added Tax (VAT) increase of one percentage point, starting with a 0.5% hike next month. Critics argue the move will deepen economic hardship, as VAT applies to essentials like food and electricity.
More than 20 million South Africans rely on welfare grants, and the nation’s unemployment rate stands at over 32%. The tax hike aims to generate approximately 15 billion rand ($800 million) annually to support health, education, and social programs.
The ANC and DA have clashed over key policy issues, including foreign affairs, land reform, and healthcare. This latest dispute follows the ANC’s historic electoral setback last year, when it lost its parliamentary majority for the first time in three decades.
Despite the DA’s opposition, the budget passed after ActionSA, a small party outside the coalition, unexpectedly backed the ANC, further shifting South Africa’s volatile political landscape.
