Mbalula rules out VAT hike in new budget, advocates pro-poor economic approach

African National Congress (ANC) secretary-general Fikile Mbalula called for the budget to be pro-poor, balanced and for the people as Finance Minister Enoch Godongwana prepares to deliver the upcoming national budget

Mbalula told journalists in a media briefing on Wednesday that his party welcomed a new process to adopt the revised fiscal framework that will now be tabled next month.

Godongwana confirmed on Wednesday that he will table the revised budget in Parliament on May 21.

This follows a ruling by the Western Cape High Court, setting aside the adoption of the fiscal framework and suspending the 0.5 % value-added tax (VAT) increase.

Mbalula called on the government to ensure that the budget reflected a conscious decision to protect the most vulnerable while ensuring the budget remained a tool for inclusive growth, job creation, and economic reconstruction.

“It has to be a people’s budget — a budget that does not retreat into austerity, nor sacrifice long-term transformation at the altar of technical compliance.

“Instead, it balances pro-growth policy with pro-poor spending, rooted in the developmental ethos of the Freedom Charter and the democratic values of the Constitution,” he said.

Mbalula further stated that the ANC will continue to engage with political parties in the Government of National Unity (GNU), including the Democratic Alliance (DA), on the revised fiscal framework.

“Our goal is to sustain the work that we started after the initial Fiscal Framework was tabled in Parliament and build consensus around a progressive medium-term fiscal strategy that takes us out of the austerity cycle into a comprehensive Growth Agenda,” he said.

Meanwhile, a budget of no confidence was tabled against Godongwana by the MK Party.

But the ANC said the minister can not resign without a clear reason.

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