South Africa's Coalition Government Faces Uncertainty Amid Budget Dispute**

The fragile coalition government of South Africa, comprised of the ANC and DA, is under severe strain due to disagreements over the national budget, with potential consequences for future governance.**

South Africa's coalition government, formed less than a year ago after the African National Congress (ANC) lost its parliamentary majority in unprecedented elections, is now facing turbulence as budgetary disagreements highlight significant divisions between the ANC and the Democratic Alliance (DA). The DA, a centre-right party, opposed a key part of the fiscal framework in the national budget, criticizing a proposed increase in VAT and advocating for across-the-board spending cuts. In contrast, the ANC, claiming a centre-left position, rejected the DA's proposal for what they deemed an "austerity budget”.

Despite the friction, the ANC demonstrated political resilience by rallying support from several smaller parties, allowing the fiscal framework to pass in parliament by a vote of 194 to 182. This divisive moment has led the DA to file a legal challenge against the vote, citing procedural flaws, and considering its continued participation in the coalition known locally as a government of national unity (GNU).

Political analysts, such as Professor William Gumede from Wits University, express uncertainty about whether the DA will decide to withdraw from the coalition, suggesting it may opt to wait for the court's decision before finalizing its stance. The coalition was formed primarily to ensure economic stability, as the business sector pushed for collaboration between the two parties.

Further tension was evident as DA spokesperson Willie Aucamp accused the ANC of crossing a "line in the sand," while DA federal chair Helen Zille hinted that the party is weighing its options carefully. Conversely, ANC parliamentary leader Mdumiseni Ntuli condemned the DA's actions as a betrayal of their coalition responsibilities, reinforcing the complexity of their political dynamic.

Notably, the ANC's push for a VAT increase—set at an additional 0.5% this year and likely another 0.5% next year—was defended as essential for maintaining public services. However, such proposals have met resistance from other political factions within the GNU, including the Inkatha Freedom Party (IFP) and ActionSA, raising questions about the future of these alliances.

The country's economic climate adds urgency to these political dramas, with high unemployment rates exceeding 30% already placing pressure on governance. As South Africa finds itself navigating these complicated waters of coalition politics, there is mounting concern that failure to resolve internal divisions could impede progress and further jeopardize the nation's economic recovery amidst external pressures, including punitive tariffs imposed by the Trump administration on South African imports.