POLITICAL WEEK AHEAD: Cabinet search for budget solutions hots up

The party political fiscal tug-of-war over government spending is expected to intensify this week, with another special cabinet meeting scheduled for Monday.

Members of the executive will consider alternative proposals to a two percentage point hike in VAT as proposed in the rejected February budget.

It is the second in a series of scheduled meetings among leaders of the government of national unity (GNU) parties aimed at resolving the impasse that led to the unprecedented postponement of the budget to March 12.  

The proposed VAT increase was rejected by GNU leaders, including ministers from the ANC and DA as well as smaller parties, setting the stage for a political showdown in the coalition government.

While the DA has called for a comprehensive three-month review of government spending to tackle the Treasury’s widening budget shortfall, the ANC is opposed to any government spending cuts.

The ANC and DA are the two biggest parties in the GNU, with each respectively receiving 40% and 20% of the vote in last year’s general election result. 

It is also a busy week in parliament, with the portfolio committee on home affairs to discuss the Immigration Amendment Bill.

The meeting was postponed two weeks ago to allow adequate consideration of submissions from among others Lawyers for Human Rights, International Detention Centre and the UN Higher Commission for Refugees as well as the ANC.

The Immigration Amendment Bill aims to amend the Immigration Act, 2002, to revise provisions relating to the arrest and detention of illegal foreigners for purposes of deportation and to align these provisions with constitutional principles.

On Wednesday, the portfolio committee on defence will engage government on a new human resources strategy to ensure the SA National Defence Force (SANDF) is rejuvenated.

The portfolio committee on defence’s chairperson, Dakota Legoete, is on record as saying a debate is needed about concerns in the SANDF after failed missions on the continent in recent years. 

National Assembly Speaker Thoko Didiza has granted the EFF’s request for the National Assembly to debate US President Donald Trump’s decision to stop aid to SA but also formulate a clear and decisive response.

The debate will take place on Thursday.

The call for a discussion comes after Trump’s decision to halt financial aid to the country over the signing of the Expropriation Bill into law.

It allows the government to expropriate land for public use or public interest.

Trump has criticised the move, saying it is aimed at expropriating private land of minority groups, and went further to issue an executive order to resettle Afrikaners who he believed were being targeted.

Parliament will now debate the matter, with the EFF — SA’s fourth-largest political party — saying it stands resolute to defend SA’s sovereignty and will ensure the debate leads to concrete actions that protect the nation’s interests.

Meanwhile, the department of co-operative governance & traditional affairs will chart the way forward after the closure of the deadline for all spaza shops and other food-handling outlets to be registered by end-February. 

Government says it will continue to implement its action plan to address the crisis of foodborne illnesses and the illicit trade of goods across the country if small businesses are not registered. 

Also this week, the ANC will begin an audit of all its branches and members in KwaZulu-Natal and Gauteng after the party’s dismal performance in the 2024 general elections in those provinces. 

OmarjeeH@businesslive.co.za