MAT CUTHBERT: ANC’s budget antics demonstrate a lack of political maturity

The ANC’s antics surrounding its failure to garner sufficient support to pass the finance minister’s budget demonstrates the 113-year-old movement’s inability to exercise the required political maturity in a coalition.

Evidently, its lack of political maturity arises from having enjoyed a parliamentary majority for 30 years, and it is now grappling with the reality it is merely a 39% party. 

In simple terms, it cannot accept that it is now obliged to work with partners in the government of national unity (GNU) to develop a shared vision, policy programme and budget that reflects all of the partners’ varied governing priorities.

The ANC wrongly assumes it is business as usual and expects its partners to bend to its will rather than negotiate. However, it soon learnt a costly lesson on February 19, when the minister was forced to postpone the budget’s tabling at the last minute, realising that he would not secure the necessary support from the DA to impose a two percentage point increase in VAT on the people of SA.

So a few weeks of intense negotiations ensued during which, once again, the DA informed the ANC that it would not be willing to support a pro-tax and anti-growth budget. The DA even went so far as to outline a comprehensive plan to reprioritise expenditure, increase revenue and stimulate economic growth — a plan that would have eliminated the need for an increase in VAT. Yet the arrogant ANC dismissed it. 

Instead, when finance minister Enoch Godongwana took to the podium to deliver his second budget on March 12 the speech still included a half percentage point increase in VAT for the 2025/2026 financial year, followed by a further half point increase to be implemented in the 2026/2027 financial year.

Once again the DA informed the ANC and South Africans that it could not support the budget, as it lacked a clear plan to generate economic growth and create jobs. This further demonstrated the ANC’s indifference towards the GNU’s apex priority, as outlined in the Statement of Intent.

The ANC’s behaviour is even more concerning given that the economy has experienced only about 1% annual growth over the past 17 years, our debt-to-GDP ratio is swiftly approaching 80%, and we face an unemployment rate of nearly 42%. These indicators highlight the urgent need for structural economic reforms.

Instead of acknowledging the harsh economic reality confronting South Africans, in what can only be characterised as the peak of political immaturity, senior ANC leaders spiralled into hysteria. 

First out of the blocks was ANC secretary-general Fikile Mbalula, who dusted off the old Bell Pottinger playbook and directed the after missive at the DA:

“Their opposition is not based on concerns for fiscal responsibility but is instead a desperate attempt to undermine transformation, protect white monopoly capital and roll back the democratic gains of the past three decades.”

Mbalula’s statement is, at best entirely untrue, and at worst completely deluded, but it reveals something significant: the ANC lacks an evidence-based counter to the economic solutions we proposed, leaving it with its final resort — the racecard.

In hot pursuit of Mbalula was Godongwana, who in a stream of consciousness this past week said: “I plead guilty. I woke up one day and said, everybody has been attacking me for austerity. I am sick and tired of it. This time, I am going to raise tax.”

If the minister were honest he would concede that we are undergoing fiscal consolidation due to his party’s inexplicable tendency to live beyond its means, with our debt-to-GDP ratio having risen from 24% in 2008 to 76% in 2025.

Furthermore, a responsible finance minister would have recognised the political dynamics behind tax increases in a nation that ranks 12th in the world in terms of its tax-to-GDP ratio, at 26%.

In recent weeks, we have also seen several reports of senior ANC leaders courting the EFF in an attempt to whip up support for its pro-tax and anti-growth budget. This demonstrates that the ANC would rather fraternise with the enemies of growth and job creation than get around the table with its GNU partners.

Make no mistake, if it opts for this course of action the rand will plummet, our borrowing costs will increase, and SA will become uninvestable. As the adage goes: “Be careful what you wish for.”

Coalition politics is complex at the best of times, and I trust SA will grow into the new political context we find ourselves in over time. However, that will require mature political leadership that places economic growth and job creation at the forefront of the agenda.

We have a limited window of opportunity to change the trajectory of our country for the coming generation. Let us not allow petulance to get in the way of prosperity.

• Cuthbert is an MP and DA head of policy.