South Africa’s cabinet has approved a long-delayed budget, reducing fears about the coalition’s stability. The budget was postponed last month due to opposition over a VAT increase. External tensions with the US related to domestic laws and international legal actions against Israel have compounded the situation, complicating the political landscape further.
South Africa’s cabinet has finally approved a long-awaited budget, alleviating concerns about the stability of its ruling coalition. This approval comes after the finance minister was compelled to delay the budget announcement last month due to opposition from the coalition’s second-largest party over a proposed VAT increase. The proposed tax hike was deemed detrimental to the nation’s stability by this party.
Recent weeks have seen heightened tensions within the coalition, particularly after the Trump administration suspended US aid to South Africa amid criticisms of new laws perceived as discriminatory towards white farmers. Additionally, the United States has disapproved of Pretoria’s actions regarding a genocide case against Israel. Foreign Policy described the budget delay as an “unwelcome complication” in this ongoing diplomatic crisis.
The approval of South Africa’s long-delayed budget by the cabinet marks a crucial step toward stabilizing the ruling coalition amidst emerging domestic and international challenges. The initial delay stemmed from concerns about a VAT increase, which faced opposition from within. Meanwhile, external pressures, including US foreign aid suspensions and international criticisms over human rights allegations, continue to complicate the country’s political landscape.
Original Source: www.semafor.com