A meeting between the African National Congress (ANC) and ActionSA on Wednesday did not include discussions about a reconstituted Government of National Unity (GNU).

This was the statement coming out of both parties amid tensions within the GNU, following the passing of the Budget in March.

The GNU has been rocked by threats of reconstitution, with the ANC, Democratic Alliance and other parties at loggerheads over the proposed value-added tax (VAT) increase proposed in the Budget increase.

Rumours of ActionSA joining the GNU were dismissed by ActionSA leader Herman Mashaba on Tuesday when he affirmed that his party would not give any consideration to the proposal of reconstituting the GNU to include ActionSA until the issues of the VAT increase and income tax bracket creep had been resolved.

Wednesday’s meeting between the ANC and ActionSA sought to address the Budget impasse, with both parties agreeing on the need for alternatives to the proposed VAT increase.

The ANC’s negotiating team, headed by party secretary-general Fikile Mbalula, met with ActionSA’s team, headed by Mashaba, and described the discussions as “frank and cordial”.

“It 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. The ANC and ActionSA both reaffirmed the necessity of identifying viable alternatives to the proposed VAT increase, with a mutual commitment to avoid any such adjustment before 1 May 2025. The discussion was firmly anchored on the fiscal framework and budgetary issues, nothing beyond that was tabled,” the ANC stressed.

ActionSA said both parties were committed to shielding South Africans from a VAT increase before May 1 and affirmed the ANC’s statement that there was no discussion about a reconstituted GNU.

“At ActionSA’s insistence, discussions were limited exclusively to the fiscal framework and the Budget. As a constructive opposition party, ActionSA is committed to play a critical role to ensure this budget crisis is ended without South Africans having to pay for the internal powerplays within the GNU,” Mashaba’s party said.

Both parties will hold another discussion in the coming week.

The ANC said it was ready to engage all parties in Parliament in the national interest and that it was committed to resolving the Budget deadlock “in a manner that preserves stability, protects the developmental mandate of the State, and fosters responsible cooperation in Parliament”.