Ntshavheni: DA trying to use budget to force reversal of Expropriation Act, Bela, NHI

Minister in the Presidency and cabinet spokesperson Khumbudzo Ntshavheni has accused the DA of trying to use the budget to force the government to backtrack on legislation they disagree with.

The party’s rejection of the budget tabled by finance minister Enoch Godongwana — his first since the formation of the government of national unity (GNU), which includes the DA — has everything to do with politics rather than protecting the poor from the proposed VAT increase, Ntshavheni said on Thursday.

Godongwana tabled a R2-trillion budget on Wednesday that proposes a one percentage point VAT increase to be implemented over two years.

This was after the minister's initial plan for a two percentage point increase for this year was scuppered in February.

Ntshavheni suggested the DA was grandstanding as there was consensus at a special cabinet session earlier this month that a VAT increase, albeit at a reduced rate, was unavoidable.  She said the meeting heard five proposals and all of them included some form of a VAT increase.

According to Ntshavheni, the DA’s turnabout on the budget was indicative of a political party trying to reverse the Basic Education Laws Amendment (Bela) Act, the National Health Insurance (NHI) Act and the Expropriation Act, all of which President Cyril Ramaphosa signed into law despite the DA’s opposition. The party was now trying to force Ramaphosa’s hand to reverse the signing of these laws, she said..

Ntshavheni urged South Africans not to be “fooled” by the DA’s opposition to the VAT hike as everyone in the cabinet had agreed on it.

“Now the DA wants to hold the country to ransom because they want to reverse the gains of the struggle of a free South Africa. Their issue with VAT is because they are always interested in making sure we don't achieve transformation gains this country has set itself to,” she said.

“It's about politics, it's about the Bela Act that seeks to make sure children have got access to schooling in the areas they live in. It's about Bela that makes sure children have access to early childhood development learning.

“It's about NHI that demands that all South Africans must have access to basic and quality health care. It's about those gains that have been registered that they want to reverse.

“And to reverse those, they will start with the Expropriation Act. The DA is aware our implementation of the act will abide by the provisions of the constitution.”

After Ntshavheni’s accusations, DA leader and minister of agriculture John Steenhuisen shot out an X post saying his party will not support what he termed “the ANC VAT budget”.

“The DA wants a series of major reforms that would grow the economy, create jobs, reduce waste and bring down taxes within three years,” he said.

“The ANC must accept it no longer holds a majority.”

Ntshavheni said the cabinet had tabled the budget, as required by law — and it was now up to parliament to decide whether it will pass.

Parliament has until April 1 to pass, amend or totally reject the budget.

“It is up to the National Assembly to decide how they want to fund the government programmes. They can amend the budget or they can send it back to cabinet for it to be reworked completely with indicators of what they want to see. But that's the deliberations that go to the [National] Assembly,” said Ntshavheni.

“As cabinet, the national executive, we have done our part. We have tabled the budget as required by law and we have tabled it within the framework provided by the law — because in terms of the Public Finance Management Act, we are required to table the budget in the [National] Assembly before the start of each financial year, which is April 1.”

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