South Africa's Budget Battle: Coalition Rifts and Parliamentary Tests

South Africa's budget cleared its initial parliamentary hurdle, but its fate remains uncertain due to coalition disagreements. The African National Congress secured temporary support from ActionSA. Reservations about tax measures persist, and negotiations with the Democratic Alliance are ongoing. A parliamentary vote on the fiscal framework is imminent.

In a critical moment for South Africa's fiscal policy, the country's contested budget has passed its first parliamentary hurdle. The budget's future, however, remains in question as political divides within the ruling coalition continue to complicate its path forward.

The African National Congress (ANC), South Africa's largest political party, garnered the necessary support on the parliament's Standing Committee on Finance with a strategic alliance with ActionSA, a smaller party outside the coalition. Despite reservations regarding proposed tax increases, the committee endorsed the fiscal framework but called for further review by the National Treasury.

The budget's passage remains at risk as the ANC struggles to reach consensus with its main coalition partner, the Democratic Alliance (DA), which seeks a stronger role in economic policy. The lower house of parliament is set to vote on the budget soon, while negotiations continue in a bid to secure a broader base of support.

(With inputs from agencies.)