- The Government of National Unity’s fragility was exposed as the National Budget narrowly passed with a 0.5% VAT increase.
- 194 MPs supported the budget, while 182 opposed it.
- MPs have a 30-day period to debate the VAT increase, with efforts to scrap it entirely.
- The Democratic Alliance plans to challenge the budget’s approval in court, claiming it was unlawful and unconstitutional.
- The DA opposed the budget, advocating for amendments to promote economic growth and job creation.
- The rand depreciated by over 1.6% following the budget proceedings, reflecting investor concerns.
- Political disagreements have contributed to the rand’s weakening and uncertainty about the government’s stability.
- The budget’s passage without pro-growth amendments sent a negative market signal.
Source: capetimes.co.za
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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