The Inkatha Freedom Party (IFP) has publicly explained its decision to support the Government of National Unity (GNU) budget, despite widespread criticism over the proposed Value Added Tax (VAT) hike. Speaking at a media forum in Durban, IFP President Velenkosini Hlabisa emphasized that the party’s support stems from a belief in the need for economic stability, certainty, and a government that prioritizes its people.
South Africa’s economy has faced prolonged stagnation, with billions lost due to declining investment, mismanagement of state-owned enterprises, and corruption, which has eroded investor confidence.
Hlabisa was clear in stating that the IFP’s participation in the GNU does not amount to political alignment with either the ANC or the DA:
“We are not in the GNU to support the ANC or the DA. We have our own ideology, policy agenda, and way of doing things,” he said.
The IFP notably rejected the original proposal of a 2% VAT increase, instead agreeing to a moderated 0.5% hike. Hlabisa argued that rejecting all increases would have forced the government to borrow unsustainably, placing the burden on future generations.
The party expressed support for key budget allocations that aim to boost the economy and create jobs:
- R402 billion has been earmarked for transport and logistics, a move expected to stimulate growth in real estate and connected sectors.
- R209.2 billion will go towards infrastructure development, directly benefiting communities across the country.
- R156.3 billion is allocated for water and sanitation, with the potential to generate jobs for South Africa’s most vulnerable.
- A further R10 billion will be used to extend child benefits to 700,000 more children.
- The budget includes funding for the employment of 11,000 teachers, 9,300 health workers, and 800 doctors and nurses across public institutions.
The IFP acknowledges the burden placed on citizens by high food and fuel costs, but maintains that the GNU budget contains critical interventions to protect low-income families.
“The challenge of affordability is real,” Hlabisa said. “But if the government had chosen to borrow more money instead of fixing the sources of revenue, it would have placed an unsustainable debt burden on the next generation.”
While the IFP concedes that the GNU cannot transform the economy overnight, it remains committed to its role within the unity government and to the broader goal of rebuilding South Africa.
