DA denies ANC’s blackmail claims over budget talks and proposes economic reforms

The Democratic Alliance (DA) has firmly rejected the ANC’s claims that it is using the budget discussions to renegotiate its position within the Government of National Unity (GNU).

This comes after the  African National Congress (ANC) accused the DA of attempting to leverage the budget process to reverse transformative laws such as the Land Expropriation Act and the National Health Insurance Act.

In a response to these allegations, DA finance spokesperson Dr Mark Burke, speaking to broadcaster Newzroom Afrika, argued that the ANC’s economic policies have failed, leading to stagnating growth, high unemployment, and poor fiscal management.

Burke critiqued the ANC’s handling of the economy, stating, “The ANC has imposed its failed ideology and policies on South Africa for at least the last 15 years, leading to unemployment above 30%.”

He further clarified that the DA is advocating for economic policies that could stimulate growth, such as the devolution and privatisation of ports like Cape Town and Richards Bay to address the economic bottlenecks that hamper business development.

When questioned about the ANC’s assertion that the DA’s approach was akin to blackmail, Burke responded, “The ANC clearly doesn’t understand how economics 101 work,” emphasising the importance of creating a business-friendly environment to attract investment and secure private property rights.

Burke also addressed criticisms regarding the VAT increase in the proposed budget, asserting that the ANC’s approach to increasing taxes is a sign of their failure to address the core issue—excessive government spending.

“South Africa doesn’t have a revenue problem; it has an expenditure problem,” Burke said, highlighting that the country’s fiscal situation has worsened under ANC policies.

In contrast, the ANC’s secretary general, Fikile Mbalula, responded by accusing the DA of opposing the budget to protect “white monopoly capital” and derail the country’s transformation agenda.

“Their opposition is not based on fiscal responsibility, but a desperate attempt to undermine transformation,” Mbalula said.

Despite the deep divides, Burke suggested that there is potential for cooperation between the parties, emphasising the DA’s willingness to work within the GNU if it leads to effective governance and economic growth.

He said, “The DA remains committed to the GNU, but they cannot keep behaving like they are a majority party when in fact they control 39 percent of the votes in parliament.”

hope. ntanzi@iol.co.za 

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