Economic Freedom Fighters (EFF) leader Julius Malema has firmly denied reports suggesting that his party is in talks with the African National Congress (ANC) regarding South Africa’s 2025 budget. The budget, which was initially scheduled for 19 February, has been postponed to 12 March due to a proposed two percentage point increase in VAT.
A recent article in the Sunday Times indicated that the ANC had warned the Democratic Alliance (DA), its largest government of national unity (GNU) partner, that if the DA did not agree to a smaller VAT increase of 0.75 percentage point to 15.75%, the ANC would seek support from the EFF. However, Malema has dismissed these claims, stating that there have been no discussions between the EFF and the ANC regarding the budget.
Speaking at a birthday celebration in Tembisa, Malema reiterated that there has been no engagement with the ANC on the budget issue. He emphasized that the decision should ultimately be in the hands of the people after a thorough discussion and evaluation of the proposed budget.
The DA, led by John Steenhuisen, has raised concerns about the VAT hike, referring to it as potentially detrimental to the economy. Instead of increasing VAT, the DA has proposed alternative measures such as cutting costs from failed or inefficient programs, reducing government advertising budgets, implementing a hiring freeze for non-essential positions, and conducting a national audit to eliminate ghost employees.
Malema echoed similar sentiments to the DA, opposing the idea of a VAT increase. He suggested that the country should focus on maximizing its mineral wealth to stimulate economic growth and create job opportunities. He criticized the current approach of taxing the poor as the primary means of generating revenue.
Although there have been no direct discussions between the ANC and the EFF on the revised budget, Malema acknowledged a general conversation on the matter. He emphasized the need for a more comprehensive dialogue that explores alternative revenue sources beyond VAT adjustments.
The budget postponement was described as a collective decision by Cabinet spokesperson Khumbudzo Ntshavheni, with ministers from various parties expressing disagreements over the VAT increase. Despite the uncertainty surrounding the budget tabling on 12 March, Malema’s party has reiterated its stance on joining the unity government only if the DA and Freedom Front Plus are excluded.
Other opposition parties, such as the uMkhonto weSizwe party and African Transformation Movement, have also expressed their refusal to support the revised budget. As the country navigates through these budgetary challenges, the differing perspectives and demands of political parties will continue to shape the discourse on economic policy and fiscal decisions.
