South Africa's Budget Battle: Tensions Rise in Coalition Government

South Africa's biggest political parties, ANC and DA, are at odds over passing the budget before a crucial parliamentary debate. The coalition faces pressure amid ideological differences, especially over VAT. Parties have struggled to find consensus on growth and spending reforms, risking coalition stability.

South Africa's African National Congress (ANC) and the Democratic Alliance (DA), the country's two largest political entities, faced an impasse on Tuesday over passing the national budget. The stand-off has emerged as a significant challenge for the coalition government formed following the ANC's loss of its parliamentary majority last year.

Despite their ideological differences, including education and health legislation, the ANC and DA have maintained a coalition to govern. However, negotiations have stalled, primarily due to disagreements over growth and spending reforms. DA leader John Steenhuisen announced that the party might withhold support unless a formal agreement is reached.

The fiscal budget, delayed multiple times due to coalition disagreements on a proposed VAT increase, is crucial for South Africa's economic direction. The decision now lies in the hands of a parliamentary committee, with further discussions expected between ANC President Cyril Ramaphosa and Steenhuisen.

(With inputs from agencies.)