The African National Congress (ANC) has pushed back against calls to cut ministerial perks, arguing that such cuts would not provide sufficient funds to cover South Africa’s R2.7 trillion budget.
ANC secretary general Fikile Mbalula made the remarks during a media briefing at the ANC’s headquarters, Luthuli House, on Thursday.
Mbalula said increasing VAT by 0.5% in the 2025 and 2026, followed by 0.5% in the 2026 and 2027, ultimately reaching 1%, was the only solution to continue funding the government’s critical programmes.
The ANC has expressed its support for the VAT hike proposal made on Wednesday by Finance Minister Enoch Godongwana.
However, opposition parties, including the Economic Freedom Fighters (EFF), ActionSA, Freedom Front Plus (FF Plus), uMkhonto weSizwe Party, Build One South Africa (BOSA), United Democratic Movement (UDM), African Christian Democratic Party (ACDP), have rejected the proposal.
In response to the VAT increase, opposition parties have suggested downsizing the Government of National Unity (GNU) cabinet as a viable alternative.
The GNU cabinet currently consists of 32 ministers and 43 deputy ministers.
In response, Mbalula said the ANC had noted the calls to cut the cabinet but questioned whether this would address the larger issue of balancing the national budget.
“It is very easy for anyone to say cut, cut, cut cabinet and all of that, which is fine,” Mbalula said.
“But will that address the gap between what we want to achieve and what we are facing as a country as we pass this particular budget?”
Mbalula pointed out that the ANC-led government had already implemented cabinet cuts in previous administrations.
“We have been cutting. Even in the austerity budgets that have been implemented, this cutting has been going on,” he said.
“Cutting will not be new, except that in the GNU we have seen the increase of cabinet, of which the intended goal was to decrease the numbers of cabinet members.”
Get your news on the go, click here to join the IOL News WhatsApp channel.
Mbalula, who previously served as a minister in several portfolios, including Transport, Police and Sports, noted that ministerial perks had already been reduced over the years.
He cited the cuts in spending on government vehicles, as one of the things that had been slashed.
“Ministers used to drive cars in the range of one million. It was cut to R500,000, and so on. Perks like credit cards were taken away, probably 15 years ago.”
“With flying arrangements, ministers are flying economy, that was cut as well from flying business locally. You only fly business internationally,” he explained.
Mbalula also mentioned that ministers are now responsible for part of the cost of housing if they own properties in Cape Town and Pretoria.
“Now, if you own two properties, Pretoria and Cape Town, you pay part of where you stay.”
Mbalula acknowledged the importance of cutting government waste, but argued that raising taxes was the only practical way to ensure the necessary revenue for the government.
Meanwhile, the ANC has stated that it is ready to collaborate with parties that are not in the Government of National Unity (GNU), in a bid to garner support for the national budget proposal.
Mbalula said the party had been engaging with both coalition partners and opposition parties.
“We have been talking to all political parties, and our door of engagement remains open to political parties within the GNU and beyond,” he said.
However, the DA has made it clear that it would not support the VAT increase as currently proposed.
DA leader John Steenhuisen said the blue party would only back the national budget if the VAT hikes were temporarily introduced.
This led to discontent within the GNU, with the VAT increase remaining a key point of contention.
IOL Politics