Budget deadlock: government confident of breakthrough in GNU talks

THE DEPARTMENT of Planning, Monitoring and Evaluation is optimistic that parties within the Government of National Unity (GNU) will address and resolve the Budget-related issues, ensuring a united front in its passage.

This assertion was made by Deputy Minister Seiso Mohai when he was responding to questions from Build One South Africa (Bosa) leader Mmusi Maimane regarding steps that will be taken to resolve internal government disputes and ensure the integrity of the Budget process and economic stability.

Mohai said the GNU’s Statement of Intent of Government established a dispute resolution mechanism to deal with disputes in the coalition government.

“A clearing house has been established to support the process and it is chaired by the deputy president as a leader of Government Business. Disagreements on the national Budget were referred to this process for engagement and ultimately the Cabinet agreed on the way forward towards the tabling of the national Budget,” Mohai said.

He also said future disagreements will continue to be dealt with through the agreed mechanisms.

“The Budget process will continue to be managed in line with the Public Finance Management Act as a primary legislation that regulates this process. The final deliberations on the national Budget will also continue to be held through the Cabinet which approves the Budget before it is tabled.”

The tabling of the Budget was moved from the initial date in February to March, and the DA has threatened not to support it if it still contained a proposal for tax increases when it is voted for in April.  

Mohai said Parliament also has a key role to play through the Money, Bills, Amendments, Procedures and Related Matters Act when the national Budget is deliberated as part of the parliamentary process.

He said it was unfortunate that the tabling of the Budget was postponed from February to March after no consensus was reached among the GNU parties.

“We are fully conscious of the role that Parliament plays in terms of facilitating a common understanding of the priorities that should receive attention. So we believe that parties will act accordingly to demonstrate maturity and ensure that the needs and the interests of the people of South Africa are put first.”

He said they were confident that Minister of Finance Enoch Godongwana and President Cyril Ramaphosa managed the challenges that arose from the Budget processes and that there was now one tabled before the House.

“We will do everything possible as a responsible government to ensure that we resolve and also we facilitate that there is a common understanding of the task at hand so that we cross through this important area of our work.”

Asked what was going to happen in the event that there was no consensus on the Budget, Mohai said work was under way to align the fiscal policy to the Medium Term Development Policy (MTDP).

It looked at issues around Budget prioritisation as an ongoing work in terms of implementation of the MTDP.

“It is very imperative that MTDP succeed around the issues of industrial policy and fiscal policy, how we are capitalising, for instance, looking into stability of the state-owned enterprises and their contribution to the growth of the economy.

“Those are some of the issues that our department will continuously engage with Treasury so that we ensure that government’s expenditure aligns with the national goals and we foster accountability via evidence-based decision-making,” he said.

Earlier this week, DA leader John Steenhuisen said the MTDP, which was tabled in the performance, monitoring and evaluation portfolio committee on Wednesday, was a good first step in developing a GNU growth and jobs agenda.

“Of course, it is the product of much discussion and considerable compromise between the parties in the GNU. That is as it should be, given the outcome of the election. However, the MTDP does not go far enough or fast enough in terms of growth and jobs,” Steenhuisen said.

“That is why the DA in the GNU will continue to engage the ANC and other parties to develop and drive a more aggressive growth agenda that will create jobs, bring prosperity, and save the fiscus from collapse.”