South Africa's Coalition Government Faces Uncertain Future Amid Budget Disputes**

Tue Jun 17 2025 08:40:17 GMT+0300 (Eastern European Summer Time)
South Africa's Coalition Government Faces Uncertain Future Amid Budget Disputes**

The African National Congress and the Democratic Alliance clash over fiscal policies, testing the stability of the coalition that governs South Africa.**


The recent budget vote has unveiled deep divisions in South Africa's coalition government, primarily between the African National Congress and the Democratic Alliance, raising questions about the future of their alliance.**

The stability of South Africa's coalition government is under significant threat as fierce disagreements surface between its leading parties, the African National Congress (ANC) and the Democratic Alliance (DA). The latest contention arose during a pivotal vote on the national budget, where the DA opposed the fiscal framework, rejecting an increase in value-added tax (VAT) and demanding overall cuts in government spending. In contrast, the ANC dismissed these measures, insisting on maintaining its proposed spending levels and rallying the backing of several smaller parties to push the budget through parliament by a margin of 194 to 182 votes. The DA subsequently took legal action, claiming that the voting process was flawed and is currently deliberating on whether to remain in what is referred to as a government of national unity (GNU).

Professor William Gumede from Wits University has indicated uncertainty regarding the DA's next steps, noting they may be weighing the implications of the recent budget vote against the forthcoming court decision. Formed less than a year ago, this coalition arose after the ANC lost its parliamentary majority for the first time since 1994, a change that was largely influenced by business sector pressures aimed at ensuring economic stability through cooperation.

Tensions within the coalition have escalated, with DA spokesman Willie Aucamp expressing grave concerns over ANC's actions, claiming they have crossed important boundaries in governance. Helen Zille, the federal chair of the DA, emphasized that while compromises are integral to coalition politics, there must also be a balanced distribution of power—something she accuses the ANC of neglecting.

The ANC responded defiantly, asserting that the DA's decision to break ranks constitutes a betrayal of their coalition commitments. Mdumiseni Ntuli, ANC's parliamentary chief whip, maintained that despite the DA's opposition, the GNU remains in place with its other partners, hinting at a fractured relationship with the DA.

The vote also drew unexpected alliances, with the DA aligning with populist opposition parties that typically position themselves against pro-business policies. Both sides united in opposing the VAT hike, claiming it disproportionately burdens lower-income citizens. The ANC's rationale for the tax increase points to essential needs in public services, arguing that poverty alleviation requires additional revenue streams.

The ramifications of these disputes extend beyond mere political disagreements. The Inkatha Freedom Party's support for the ANC and cooperation from ActionSA signal a shift in party dynamics that could further complicate governance. ActionSA's agreement with the ANC to explore alternative tax solutions has created additional friction for the DA.

As South Africa grapples with an unemployment rate exceeding 30%, the necessity for a cohesive approach among its major political players becomes increasingly critical. As tensions mount and tariffs imposed by the US threaten economic stability, analysts are suggesting that the situation could lead to more significant implications for the nation unless the parties can come together to address their stark differences.

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