South Africa’s Coalition Government Faces Major Rift Over Budget Vote
South Africa’s fragile coalition government is facing a serious test of unity after a deep split emerged between the African National Congress (ANC) and its main coalition partner, the Democratic Alliance (DA), during a crucial national budget vote.
The centre-right DA voted against the fiscal framework, rejecting a proposed increase in value-added tax (VAT) and calling instead for sweeping spending cuts across government departments. The ANC, which leans centre-left, dismissed the proposal as an “austerity budget” and refused to compromise.
Despite the tensions, the ANC managed to secure passage of the fiscal framework by 194 votes to 182, rallying the support of several smaller parties both inside and outside the coalition.
DA Challenges Budget Vote
The DA has since filed court papers to challenge the outcome, claiming the vote was “procedurally flawed.” The party’s top leadership is expected to meet soon to decide whether to remain in what South Africans call the Government of National Unity (GNU).
“It’s unclear whether the DA will leave now or wait for the court’s ruling,” said Professor William Gumede of Wits University’s School of Governance. “The party must weigh whether this is the tipping point.”
Coalition Under Strain
The GNU was formed less than a year ago, after the ANC lost its parliamentary majority for the first time since Nelson Mandela’s 1994 victory ended apartheid. The coalition, supported by South Africa’s business community, was seen as a way to ensure political and economic stability.
However, tensions have escalated sharply. DA spokesperson Willie Aucamp accused the ANC of a “serious infraction” and said it had “crossed a line in the sand.”
DA federal chair Helen Zille said the party would carefully consider its options before making a final decision.
“Coalitions require compromise,” she said. “But the ANC refuses to share power. You can’t have it all.”
The ANC’s parliamentary chief whip, Mdumiseni Ntuli, hit back, accusing the DA of “complete betrayal” for voting against its coalition partners.
“The DA is—or was—a member,” he remarked. “I don’t know what happens now, but the GNU continues.”
ANC Defends VAT Hike
President Cyril Ramaphosa’s spokesperson, Vincent Magwenya, said it was inconsistent for the DA to remain in a government whose budget it opposed.
The DA’s stance put it on the same side as its political rivals — Jacob Zuma’s uMkhonto weSizwe (MK) party and Julius Malema’s Economic Freedom Fighters (EFF) — both of which strongly oppose VAT increases, arguing they hurt the poor.
DA leader John Steenhuisen said the ANC was out of touch with ordinary citizens.
“If they bought their own groceries or filled their own tanks, they’d know how hard life already is,” he said.
The ANC, however, argued that the 0.5% VAT increase this year — followed by another next year — was essential to maintain funding for public services such as health and education.
Smaller Parties Shift Alliances
In a significant blow to the DA, the Inkatha Freedom Party (IFP) voted with the ANC, effectively ending its pre-election alliance with the DA. Meanwhile, ActionSA, a smaller opposition party that broke away from the DA, helped the ANC secure victory.
ActionSA said it had reached a deal with the ANC to scrap the VAT increase later, while exploring alternative revenue sources.
“The adoption of the fiscal framework was only one stage in a multi-step budget process,” the party said.
Economic and Political Fallout
Prof. Gumede warned that the optics of a tax increase during a period of poor public service delivery “don’t look good for the ANC.”
“The DA is using this moment to position itself as pro-poor,” he said.
The dispute over the budget follows a series of court challenges by the DA against ANC-backed laws, including the controversial land expropriation act, which once led the U.S. Trump administration to cut aid to South Africa.
In a further blow, the Trump administration has now imposed 30% tariffs on South African imports, citing governance concerns — a move that threatens to deepen the country’s economic woes amid unemployment exceeding 30%.
Ramaphosa’s office condemned the tariffs as “punitive and harmful to trade and shared prosperity.”
For many South Africans, the crisis highlights an urgent need for the country’s two dominant parties to find common ground — or risk plunging the nation into deeper political and economic instability.
