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Labrish
Nyuuz
South Africa in a Budget Bind
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[QUOTE="Nehanda, post: 28644, member: 2262"] South Africa faces rough times. Their mixed government cannot agree on money plans. The budget finally showed up after waiting a month. Experts say Finance Minister Enoch Godongwana shared ideas many groups hated. Even key partners said no twice. The African National Congress teamed up with nine parties after big losses in elections last year. Their main partner, the Democratic Alliance, refuses to help pass money plans. They demand changes, or the ANC needs other friends. Godongwana delayed his money talk last month. People hated his plan to raise taxes on everyday items, which would have jumped prices when South Africans already paid a lot for basics. Everyone felt shocked. This never happened since freedom arrived in 1994. After many talks, Godongwana showed up Wednesday. He called his new plan smart and practical. He tried making friends by saying tax increases would be smaller. They would happen over two years. First, he wanted sales tax at 17% instead of 15%. He gradually changed to 16%. The minister claims they need more cash for hospitals, schools, buses, and police. He asked if parties prefer closed schools or fired workers. He thinks nobody wants these choices. He picked sales tax because it brings more money. He believes this hurts jobs and businesses less. The ANC likes the plan, but the DA refuses. They want temporary taxes and big changes. They demand a better economy, less waste, and more jobs within three years. This battle makes President Ramaphosa look bad at deals. Just one tiny party agrees with the budget. The mixed government keeps cracking as big parties fight about key issues since day one. They battle about land rules where government can take property without payment sometimes. The DA fights this in court. They say it breaks the constitution and scares property owners. Former President Zuma's party and the Economic Freedom Fighters also reject the budget. They believe tax jumps harm poor people the worst. The ANC needs one of these three big parties to pass their money plans. Thokozile Madonko from Wits University says South Africa entered unknown territory with this fight. She told BBC that parliament matters greatly regarding whether the budget passes, changes, or fails. Before, the ANC pushed through anything they wanted. Those days ended. They must befriend other parties or watch the budget fail. This might destroy the entire government. Madonko thinks the minister took an easy path by raising taxes everyone pays. She prefers special taxes for rich people. Adrian Saville believes the budget disappoints because it repeats old promises about jobs and growth where unemployment passes 30 percent. He wants actual numbers and clear plans instead of empty words. He demands ways to check results next year. Godongwana built a reputation as reliable. Both business leaders and worker groups respected him. But this budget mess damaged his name. He must somehow pass this plan through parliament or risk losing his job. [/QUOTE]
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Nyuuz
South Africa in a Budget Bind
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