The ANC and ActionSA have concluded a “productive” budget meeting, with the key discussion being a mutual commitment to ensure that the 0.5% VAT increase was scrapped before May 1 and did not entertain the reconstitution of the GNU.
ActionSA said the meeting did not touch on the issue of the Government of National Unity (GNU) being reconstituted. The ANC supported this with their statement.
“No discussion of any kind took place regarding a reconstituted GNU. At ActionSA’s insistence, discussions were limited exclusively to the fiscal framework and the budget,” ActionSA said.
The two parties met on Wednesday, April 9, in a bid to resolve the budget impasse.
This follows their agreement that if ActionSA supported the ANC in passing the budget, then the VAT hike would be scrapped.
However, according to President Cyril Ramaphosa, the ANC was finding difficulty in resolving the matter.
Following the meeting, the parties said they were committed to this process and to shield South Africans from any VAT hike.
In a statement, the ANC said the meeting reflected a shared recognition of the urgency required to resolve the current budget impasse in a manner that safeguards service delivery, upholds the principles of sound fiscal governance, and protects the most vulnerable from any unjust burden.
ActionSA said the meeting addressed a number of realities about the challenging fiscal environment in which this national budget is being considered.
The parties have agreed to have a follow-up meeting in the coming week as part of this commitment to finding solutions.
Meanwhile, on Tuesday, ANC secretary-general Fikile Mbalula dismissed claims that his party tricked ActionSA leader Herman Mashaba into supporting them in the budget, knowing very well that the hike would not be scrapped.
“We are not tricksters, we engaged with ActionSA. They raised their issue about the VAT and we committed to engage further. That's not tricking anyone,” he said, adding that Mashaba must relax.
Mbalula also said the ANC will continue to engage other political parties regarding the budget as well as the GNU.
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