African National Congress (ANC) secretary-general Fikile Mbalula expressed confidence, on Tuesday, that the Budget will be passed, although negotiations are ongoing.

The Standing Committee on Finance is on Tuesday scheduled to vote on the fiscal framework, focusing on the National Treasury's challenges in stabilising the debt trajectory and addressing inefficiencies in network industries to enhance economic performance.

In February, the Democratic Alliance (DA) and other opposition parties refused to support Finance Minister Enoch Godongwana’s Budget, with proposals to raise value-added tax. 

Mbalula said the ANC was in engagements with all the parties in the Government of National Unity (GNU), explaining that the process of the negotiations was fluid.

“…so, there is a lot of engagements in different levels that are happening and taking place with the aim of finding a solution and it has been a long process until this far,” he said.

Mbalula said the ANC had “shown commitment” and that the party was working with all the parties to find solutions to the Budget, noting that his party had a draft framework to engage all parties.

“Having spoken to everybody, we think now there is a basis for us to have an agreement with everyone, not only with the DA (Democratic Alliance) but everybody in the GNU and even beyond those who agree with us,” he said.

The issue in question for the ANC, he said, was VAT, highlighting the party had disagreed with National Treasury’s proposed 2% increase. He also said the party believed the 0.5% VAT increase would be withdrawn and was not permanent.

Mbalula further noted that there were other issues such as spending.

He explained that some of the issues raised by the DA were not relevant to the Budget, saying parties needed to engage on them.

“…but people want agreement that there should be guarantees that these matters will be addressed. We are addressing the question of devolution in terms of government in the rail policy,” he said.

He said the DA had a catalogue of issues, which he claimed shifted from time to time.

He pointed out the ANC was all for economic growth.

“We believe that there is a lot that can make us to move all together to cross. We need to pass the Budget for the sake of people of South Africa but at the same time we need to be alive and talk to others and that is what we are clear [about] as the ANC. We are the largest party, we need to talk to others, but it is not really concessions, it is about what the Minister presented before us, that we think does not address most of the concerns most people have raised in their political parties,” he said.

Mbalula expressed confidence that a solution would be reached, and that the Budget would be passed.

He noted that concerns raised by other political parties, including those who not in the GNU, would be followed up on.

He said he believed parties were moving close to each other, saying this closeness would be consolidated into an agreement.

“…because this our first Budget in the GNU that we need to pass and what that agreement will entail is going to be important for everyone to have oversight of it and agree on the way forward.

“If you engage with this process on the basis of political scoring, it may lead to situations wherein the GNU would have to be reconfigured,” he explained.

He announced that the ANC was committed to the GNU, however the maturity of its partners was very important.

“But if people come with political agendas that they want to be seen doing things in a different manner, it will affect the GNU in the long term, that is what we need to understand,” he explained.