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Reading: Budget deadlock threatens governance stability, small parties warn – The Mail & Guardian
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African News Herald > Blog > Politics > Budget deadlock threatens governance stability, small parties warn – The Mail & Guardian
Politics

Budget deadlock threatens governance stability, small parties warn – The Mail & Guardian

ANH Team
Last updated: March 12, 2025 7:29 am
ANH Team
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The ongoing deadlock over the 2025 Budget between the African National Congress (ANC) and the Democratic Alliance (DA) has caused frustration amongst other parties in the Government of National Unity (GNU). Members of the government and opposition parties have raised concerns that this impasse could potentially trigger the need for fresh elections.

The ANC and DA have been at odds over various aspects of the budget, including fiscal policy, tax policy, and the allocation of funds for social grants. Finance Minister Enoch Godongwana has been in heated negotiations with both parties in an attempt to find common ground and reach a consensus on the budget.

The stalemate has left many in the GNU worried about the implications for governance and the economy. Without a budget in place, essential services and infrastructure projects could be delayed or put on hold, leading to further economic instability and uncertainty.

The Treasury has warned that the longer the deadlock continues, the greater the risk to the country’s financial stability. The uncertainty surrounding the budget has also had an impact on investor confidence and the overall business climate in South Africa.

As tensions rise and pressure mounts on both the ANC and DA to come to a resolution, there is growing concern that the situation may escalate to the point where new elections are necessary to break the impasse. This would not only be a costly and time-consuming process but could also further destabilize an already fragile political landscape.

In the midst of this political turmoil, other parties in the GNU are calling for transparency, accountability, and a swift resolution to the budget crisis. They are urging the ANC and DA to put aside their differences and prioritize the interests of the country above all else.

See also  Political parties divided over VAT hike, albeit lower than initial proposal – The Mail & Guardian

The fate of the 2025 Budget hangs in the balance as negotiations continue behind closed doors. The outcome of these talks will not only shape the country’s financial future but will also have far-reaching implications for governance, stability, and democracy in South Africa. Only time will tell if a compromise can be reached or if the deadlock will persist, leading to even greater uncertainty and upheaval in the months to come.

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