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The Minister of Finance of South Africa, Enoch Godongwana, has been forced to postpone the presentation of the national budget after the acute disagreements within the coalition government.
The partners of the coalition derailed their budget after opposing their plan to increase the value of added value (VAT), which would have seen that the prices of the goods went up at a time when the South Africans are affected by the cost crisis of life.
Godongwana is a member of the African National Congress (ANC), which was forced to enter a coalition after losing its parliamentary majority in the elections last year.
His lack of presentation of the budget sent shock waves in South Africa, since it has never happened since the end of the white minorization rule in 1994.
The currency collapsed against the US dollar, since the markets reacted negatively to the news.
The Democratic Alliance (DA), which is the second largest party in the coalition, was one of the most vowel critics of the proposed budget.
Its leader, John Stenhuisen, said the party could not be in “good awareness” according to an VAT increase from 15% to 17%, since it would have “broken the back of our economy.”
VAT increased for the last time in 2018 from 14% to 15%.
The other members of the ANC coalition, such as the Front Plus of Freedom, said that they were only informed of the proposed increase before Godongwana was due to the budget for the budget.
Godongwana told reporters that the planned increase was mentioned in the cabinet last week.
The budget will now be presented on March 12, after more discussions to iron the differences, he said.
The fighters of economic freedom of the opposition (EFF) expressed consternation for the postponement, saying that it was a “symptom of weak, undecided and opportunistic governance.”
But he acclaimed the postponement as a “victory”, and said he would press a budget that is “better for growth and employment.”