The Minister of Finance, Enoch Godongwana, faces political headache

South Africa has entered unknown waters after deep divisions in the coalition government on the national budget that has finally been presented after a month delay.

This is the opinion of the analysts after the budget of the Minister of Finance Enoch Godongwana attracted a violent reaction from several sectors, including The key partners in the coalition government reject their proposals for the second time.

The African National Congress (ANC) formed a government of National Unity (GNU) with nine other parties after losing its parliamentary majority in the elections last year.

And, without the support of its largest coalition partner, the Democratic Alliance (DA) will not pass the budget unless you repeat your contentious policies or obtain the support of the largest opposition parties.

Godongwana was forced to postpone your budget presentation last month After a fierce resistance to their plan to increase the value of added value (VAT), which would have seen that the prices of the goods rose at a time when South Africans are affected by the crisis of the cost of life.

This delay sent shock waves through South Africa at that time, since it was the first time this happened since the end of the white minority rule in 1994.

After a series of meetings between government parts, Godongwana returned on Wednesday to present what he called a “bold and pragmatic” budget.

In his reviewed budget, the minister tried to appease his GNU partners by announcing a reduced VAT increase, which will be implemented for a period of two years.

Godongwana had initially proposed to increase VAT from 15% to 17%, but now has suggested to raise it to 16% in two stages.

The minister says that the increase in taxes is necessary to address “persistent pressures of expenses in health, education, transport and security.”

“They (other parts) have to make a decision: do we close schools, hospitals or clinics? They have to make that decision.

The minister added that he had chosen to point to VAT instead of personal and corporate taxes, since the last two would generate less income while “potentially harm investment, employment creation and economic growth.”

Godongwana’s reviewed budget has the support of his party, the ANC, but has not been able to appease the day, which said he would not “support any increase in taxes, unless these increases were temporary and the ANC agreed a series of important reforms” that would increase the economy, reduce waste and create jobs in the next three years.

The Impasse has tarnished the so recognized reputation of President Cyril Ramaphosa as a merchant, with only one of its coalition partners, the small patriotic alliance (PA), which supports the budget.

The last Tussle highlights the deepening divisions in the fragile coalition government, since the two largest parties have blocked horns on key issues since their formation.

This includes a controversial Land Law, which allows private property to be seized by the Government in certain cases, without any compensation offered to the owners.

The DA is challenging the law in court, arguing that it is unconstitutional and threatens property rights in South Africa.

The two largest opposition parties, Umkhonto Wesizwe (MK) of former President Jacob Zuma, and the economic combatants of Julius Malema (EFF), have also rejected the budget, saying that the proposed tax increases would be the most difficult poor.

This leaves the ANC in a difficult situation, since it needs the support of at least one of the other three largest parts to approve the budget.

WITS University Analyst of South Africa, Thokozile Madonko, says that the point of the deadline has left South Africa in “unknown waters.”

She tells the BBC that the role of Parliament will now be “absolutely critical”, since it accepted, changed or rejected the budget.

And while in the past the ANC could always overcome its policies, this is no longer the case.

This will force him to reach an agreement with other parties or risk seeing that the budget will vote, something that could result in the collapse of the coalition government.

Mrs. Madonko criticized Godongwana’s decision to take the “most lazy option” proposing an increase in VAT, which will affect the entire population, instead of attacking the richest section of the population by introducing a “tax on wealth” on them.

Another expert, Adrian Saville, said that the budget was a “madness” since the minister repeated many old promises to promote economic growth and create jobs in a country where unemployment is at more than 30%.

“Those are words. Give us the numbers (and) tell us what you intend to do so that when we meet again in a year, we know if you have succeeded or if you have fallen short,” he tells the BBC.

Godongwana has been seen for a long time as a stable pair, commanding respect for both the business sector and the trade union movement.

But its credibility has hit after the crisis on the budget. Now he faces the challenge of saving his reputation by directing the budget through Parliament, or people would increasingly question their suitability for the position.