IFP President Velenkosi Hlabisa said they will meet with the Democratic Alliance to try and resolve the budget issue.
Image: Khaya Ngwenya / Independent Newspapers
While it accepted the Budget and reaffirmed its commitment in government, the Inkatha Freedom Party (IFP) said it will meet with the Democratic Alliance (DA) on Sunday, as part of its ongoing engagements to foster cooperation and consensus in the national interest.
The party’s leader, Velenkosini Hlabisa, met with the ANC’s secretary-general Fikile Mbalula on Thursday, to further discuss and come up with a solution to the budget impasse.
Political parties including the (DA and the Economic Freedom Fighters (EFF) have approached the courts to challenge the passing of the 2025 Fiscal Framework in Parliament.
The Fiscal Framework includes a 0.5% Value-Added Tax (VAT) increase in the budget.
The IFP has expressed its conditional support for the upcoming VAT increase, set to take effect in May, viewing it as a temporary but necessary intervention to generate critical revenue.
As the third-largest party in the GNU, the IFP commended Finance Minister Enoch Godongwana’s budget as fundamentally pro-poor, highlighting its emphasis on strong social safety nets designed to shield vulnerable households.
Among the key measures welcomed by the party is the expansion of the list of zero-rated VAT items, aimed at easing the financial burden on low-income families.
“The Parties affirm that the VAT increase is a temporary short-term intervention and agreed that the National Treasury must urgently explore alternative revenue-generation strategies to mitigate the impact of this marginal increase on consumers.
“Both parties further concurred that additional government borrowing is not a viable option given South Africa’s current economic constraints and debt levels,” IFP spokesperson Nkululeko Hlengwa said in a statement.
Also in a statement, the ANC said the parties both agreed on the urgent need to explorefair and sustainable revenue alternatives.
“The discussions focused on the implications of the recently adopted fiscal framework and to resolve the budgetimpasse by reinforcing confidence in the national budget process,” it said.
“Importantly, the ANC and IFP jointly acknowledged the urgency of stabilising key development finance institutions. To this end, both parties committed to a bipartisan process to save and strengthen Ithala Bank.
“These engagements form part of broader parliamentary consultations to build consensus and drive national progress. The ANC remains committed to inclusive governance, democratic cooperation, and responsive leadership.”
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