BBC News, Johannesburg
South Africa entered the untreated waters after the deep divisions in the coalition government because of the state budget, which he finally filed after months of delay.
This is an analyst position after the budget of the Minister of Finance Enoch Godongwan pulled a return reaction from a different quarters, including Key partners in the coalition government rejecting his proposals for the second time.
The African National Congress (ANC) founded the Government of National Unity (GNU) with nine other sides after losing a parliamentary majority in the elections last year.
And, without the support of his greatest coalition partner, the Democratic Union (yes), he will not succeed in the budget, unless he reconsiders his disputed policy or receives the support of the greatest opposition parties.
Godongwana was forced delay the presentation of the budget last month After a fierce resistance to his plane to raise value added tax (VAT), which would see that the prices of goods increase at a time when the South Africans are severely affected by a crisis of living costs.
This delay at that time sent shock waves through South Africa, as this first happened since the end of the 1994 white minority rule.
After a series of meetings between the Government parties, Godongwana returned on Wednesday to introduce what he called the “bold and pragmatic” budget.
In his revised budget, the minister tried to calm his gnu partners, announcing a reduced increase in VAT, which will be conducted over a two-year period.
Godongwana initially suggested an increase in VAT 15% to 17%, but has now suggested that it increase it to 16% in two stages.
The Minister says that it takes an increase in tax to combat “permanent pressure of consumption in health, education, traffic and safety”.
“They [other parties] We have to decide – do we close schools, hospitals or clinics? They have to bring that choice. Do we release people? It’s a choice we have to bring and it’s not a good choice, “Godongwan said.
The minister added that he decided to target VAT, not to a personal and corporate tax, because the latter two would generate fewer revenues, and “potentially harm investment, opening up new jobs and economic growth.”
The revised Godongwane budget supports his party, Anc, but failed to calm down yes, who said he would “support any increase in taxes unless these increases were temporary, and Anc agreed with a series of large reforms” that would grow the economy, reduce waste and create jobs over the next three years.
The downtime was stunned in the great reputation of President Cyril Ramaphos as an agreement, and only one of his coalition partners – a small patriotic alliance (PA) – supported the budget.
The last shower emphasizes the deepening divisions in the fragile coalition government, because the two largest parties locked the horns because of key issues from its formation.
This includes a controversial Land Law, which allows the Government of private assets to subtract in certain cases, without any compensation offered to the owners.
That he challenged the law in court, claiming that he was unconstitutional and threatened with property rights in South Africa.
Two largest opposition parties – Umkhonto Wesizwe (MK) of former president Jacob Zuma and economic freedom Julius Malem – also rejected the budget, saying that the proposed tax will hit the poor most difficult.
Anc leaves this in a difficult situation, and it requires support for at least one of the three other largest parties to calculate the budget.
Analyst at WITS University in South Africa, Thokosile Madonko, says he left the stare over the budget by South Africa in “UNCHARTED WATERS”.
She says the BBC that the role of parliament will now be “absolutely critical” because he either accepted, changed or refused the budget.
And while in the past, Anc could always break through his policies, this is no longer the case.
This will make him an agreement with other parties or take the risk of a voice budget – something that could result in the collapse of the coalition government.
Mrs. Madonko criticized the decision of Godongwane to take over the “lowest option”, suggesting an increase in VAT, which would affect the entire population, instead of targeting the richest part of the population by introducing a “wealth tax” on them.
Another expert, Adrian Saville, said the budget was a “nonsense” while the minister repeated many old promises to promote economic growth and create jobs in a country where unemployment costs more than 30%.
“These are words. Give us numbers [and] Tell us what you intend to do so when we meet again in a year, we know if you were successful or went short, “he says BBC.
Godongwana has long been seen as a permanent pair of hands, commanding the respect of both the business sector and the union movement.
But his credibility knocked after the crisis about the budget. Now he is facing the challenge of rescuing his reputation by managing the budget through parliament – or people would increasingly question his suitability for the place.
