Labour federations Cosatu and the South African Federation of Trade Unions have led calls for a budget that addresses massive unemployment and weak growth

The finance minister announced a lower inflation target of 3%, which the South African Reserve Bank has been pushing for

uMkhonto weSizwe party is calling for the nationalisation of mineral resources, land redistribution without compensation and the expansion of the VAT zero-rated basket

Now that a VAT increase has been ruled out, the finance minister must find another way to plug a R75bn gap or risk collapsing public services and investor confidence

The Democratic Alliance launched the application against the finance minister, the South African Revenue Service, the Speaker of the National Assembly and the Chairperson of the National Council of Provinces.

Meetings are due in coming days and weeks to undo the damage after the finance minister caved on the tax increase

The finance ministry in a midnight announcement said the decision was informed by consultations with political parties

Counsel for the EFF told the high court that ActionSA was swindled in an unconstitutional manner to support a VAT hike.

Amending his proposal at this stage would force more borrowing, the minister warned in papers filed in response to the DA

The parties remain divided over an increase in VAT, which the DA says South Africans cannot afford

The stand-off between the two parties dates back to 19 February when DA leader John Steenhuisen made clear the party would not support a national budget that proposed a two percentage point increase in VAT

Both parties are mindful of the magnitude of a split as South Africa faces more economic turmoil

In its court papers filed on Thursday, the party said the fiscal framework that will lead to the tax increase was pushed through unprocedurally

But the presidency said on Wednesday the crunch vote on the fiscal framework was a test of the party’s commitment to the GNU

The agreement came thanks to a lifeline ActionSA threw the ANC

Budget approval hangs in the balance and resistance to it is set to play out in the legislature’s finance committees

The treasury needs to focus on strengthening revenue collection, efficient allocation and optimisation

Operational inefficiencies and infrastructure neglect have led to logistical challenges costing the economy R1 billion daily in lost economic output

The DA has upped the ante in its demands for consultation on every point of government policy, although ANC ministers also opposed a planned VAT increase