South African President Cyril Ramaphosa has expressed his full support for Finance Minister Enoch Godongwana following a contentious budget impasse that has sparked debate within the ruling African National Congress (ANC) and drawn national attention. The dispute centers on disagreements over fiscal discipline and government spending priorities ahead of crucial general elections.
The tension began after Godongwana presented a mid-term budget that proposed tighter spending controls, reduced public sector wage increases, and cuts to certain government programs in an effort to stabilize South Africa’s rising debt levels and reassure international investors. However, these proposals have faced resistance from some ANC members, trade unions, and key allies, who argue that austerity measures will deepen inequality and harm service delivery to the poor.
President Ramaphosa, speaking at a press briefing at the Union Buildings in Pretoria, praised Godongwana’s difficult but necessary decisions and reiterated the government’s commitment to maintaining fiscal responsibility while protecting essential social programs. Minister Godongwana has my full confidence. He is working in the best interest of the country, ensuring that we avoid a fiscal cliff and build a more stable economic future, Ramaphosa said.
The president’s endorsement comes amid rising political pressure. Several senior ANC figures have reportedly urged a revision of the budget framework to reflect the party’s social obligations and election promises. The budget stand-off has exposed deeper divisions within the ANC between its reformist and populist wings, with some members advocating for increased borrowing to fund job creation and social grants.
Godongwana, a seasoned economist and key figure in Ramaphosa’s cabinet, has stood firm on the need for financial discipline, warning that unchecked spending could lead to credit downgrades and undermine investor confidence. We cannot spend money we don’t have, he said during a recent address in Parliament. We must balance our social responsibilities with our fiscal realities.
The impasse also comes at a time when South Africa’s economy is under pressure from high unemployment, sluggish growth, and ongoing load shedding that has crippled businesses and households alike. Markets have responded cautiously, with the rand experiencing minor fluctuations and bond yields rising on concerns over policy uncertainty.
Despite the political friction, Ramaphosa insisted that the ANC remains united behind the goal of economic recovery. We must debate, we must engage, but ultimately, we must act in unity to safeguard our country’s future, he said.
Observers note that how the government handles the current fiscal debate could shape both the ANC’s electoral prospects and investor confidence in the months ahead. With national elections on the horizon, the Ramaphosa administration faces the difficult task of balancing fiscal prudence with public expectations.
