19 February 2025
MEDIA RELEASE
SUMMARY: The Association of Mineworkers and Construction Union (AMCU) strongly condemns the last-minute postponement of the 2025 Budget Speech, exposing the so-called Government of National Unity (GNU) as nothing more than a deceptive ANC-DA coalition that prioritises big business over the working class. The Union warns that the proposed 2% VAT increase will further impoverish struggling South Africans, leading to inflationary pressures that will ultimately worsening the economic crisis. The Union indicates how South Africa remains trapped in the triple crisis of poverty, inequality, and unemployment, highlighting the failures of the ANC when it comes to addressing challenges and general economic governance.
Earlier today, Finance Minister Enoch Godongwana announced the postponement of the 2025 Budget Speech, which was initially scheduled to be delivered to Parliament. The delay comes after reported disagreements within the GNU over a proposed 2% VAT increase, which some members argue would disproportionately impact the poor.
The so-called GNU has once again revealed its true colours – a mere political charade disguising an unholy alliance between the ANC and the DA. The postponement of the 2025 Budget Speech is a damning indictment of this manufactured unity, which is nothing more than an ANC-DA pact that serves the interests of big business at the expense of the working class. This GNU was designed to mislead the nation not to see the ANC-DA Coalition for what it is, while also absolving both parties from being held accountable for the Seventh Administration.
The postponement of the 2025 Budget Speech marks an unprecedented disruption in the national budgeting process, raising concerns about policy certainty and the ability of the government to navigate South Africa’s economic challenges. Market analysts have already noted a weakening of the rand following the announcement, while opposition parties and civil society groups have expressed frustration over the delay. The Budget Speech has been rescheduled for 12 March 2025, as negotiations within the GNU continue.
The excuse for this unprecedented delay is a dispute over a proposed 2% VAT hike – a direct attack on the poor and working-class majority who already struggle to survive under crippling economic conditions. Instead of taxing the rich and holding corrupt politicians accountable, the ANC is eager to squeeze every last cent from the pockets of ordinary South Africans. Meanwhile, the DA, ever the defender of big capital, is using its influence to prevent the ANC from implementing another disastrous economic policy.
“This debacle exposes the so-called GNU for what it really is: an ANC-DA coalition that has no genuine concern for workers and the poor”, said AMCU President Joseph Mathunjwa.
“The fact of the matter is that the DA has exposed ANC and showed who is really in charge by stopping this anti-poor and anti-working class budget. This 2% VAT increase was to safeguard their perks in terms of the Ministerial Handbook”, he added.
The Ministerial Handbook is a guide that outlines the rules, responsibilities, and benefits for members of the executive branch of the South African government, including ministers, deputy ministers, premiers, and members of the executive council. It inter alia describes the benefits and allowances that members of the executive are entitled to, such as salaries, allowances, and travel benefits.
“The ANC has once again proven its incompetence, and the DA emerges as the real power broker in this arrangement, preventing the ANC from plunging South Africa into even deeper chaos with their idea of increasing VAT”, he said.
There is general consensus that the proposed VAT increase would be nothing short of economic sabotage. Increasing VAT will directly inflate the cost of basic goods and services, punishing the very people who are already struggling to afford food, electricity, and transport. This reckless policy will drive up inflation, forcing trade unions to demand higher wages to protect workers from starvation. The inevitable result? A wage-price spiral that will further entrench economic instability, pushing inflation even higher and eroding the livelihoods of workers across all sectors.
The ANC’s inability to govern responsibly and its disregard for the economic realities of the working class is once again laid bare. Instead of taxing wealth, closing tax loopholes, shrinking their bloated cabinet or cracking down on corruption, they want to balance the budget on the backs of the poor.
Meanwhile, the DA emerges as the true winner in this situation, asserting its power and preventing the ANC from sinking the country into further economic despair.
“If the ANC and DA are really concerned about South Africans and their socioeconomic welfare, they must stop looking only wat ways to increase their revenue through tax, and rather focus on cutting costs resulting from illicit financial flows and tax evasion”, said Mathunjwa. “Why don’t they rather invest in more technology to collect tax from those who are not complying”, he asked.
South Africa remains in the iron grip of the triple crisis of poverty, inequality, and unemployment, with no relief in sight for the working class. Over half of the population is shackled in poverty, unable to afford even the most basic necessities while the capitalist elite continues to hoard obscene wealth.
The nation also faces significant economic disparities, with a Gini coefficient of 61.8 in 2021, indicating one of the highest levels of income inequality globally. Inequality runs rampant, making South Africa one of the most economically divided countries on the planet, where the rich live in excess while the poor struggle to survive.
Unemployment is a ticking time bomb, with nearly one in three South Africans jobless and a shocking two-thirds of young people left without work or hope for a dignified future. The official rate at 31,9% in the fourth quarter of 2024, and youth unemployment (ages 15-24) alarmingly at 60,8% in the second quarter of 2024.
“This latest fiasco is yet another example of how clueless the ANC is when it comes to economic governance. The only silver lining is that the DA has stopped them from making an even bigger mess. But make no mistake – neither party represents the interests of workers, and AMCU will continue to fight against policies that harm the working class and society at large”, Mathunjwa concluded.
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For more information or media interviews, contact AMCU President Joseph Mathunjwa.