The South African National Assembly has approved the country’s revised fiscal framework and revenue proposals. This is a significant step in the budget process after months of political wrangling.
The budget, which underpins Africa’s largest economy, has been postponed and rescheduled several times due to internal disagreements within the ruling coalition, particularly over a controversial proposal to increase value-added tax (VAT). Finance Minister Enoch Godongwana was eventually forced to withdraw the VAT increase plan in response to growing opposition.
In Wednesday’s vote, 268 members of parliament supported the framework, 88 voted against it and two abstained. Members of parliament from the two major parties, the African National Congress (ANC) and the Democratic Alliance (DA), voted in favour after reaching a compromise.
The ANC and DA together hold a majority in the 400-seat National Assembly, providing enough support to pass the revised proposals.