The Democratic Alliance (DA) has been actively influencing South Africa’s fiscal policy, with Deputy Finance Minister Ashor Sarupen emerging as a central figure in bridging party priorities with Treasury objectives. Helen Zille, chairperson of the DA Federal Council, has emphasized his role in this process. This marks a significant shift for the DA, which now holds a deputy ministerial position in finance under the Government of National Unity (GNU) and has moved away from producing an “alternative budget” to shaping policy from within the government.
Since his appointment in June 2024, Sarupen has transitioned from critiquing Treasury budgets to collaborating on their development. As an opposition MP, he had previously criticized the ANC-led government for unrealistic growth projections and unsustainable bailouts for state-owned enterprises. However, the 2024 Medium-Term Budget Policy Statement (MTBPS) reflects what Sarupen calls “synergy” between DA proposals and Treasury’s revised approach, including stricter fiscal consolidation and reduced debt reliance.
“The concerns I raised in Parliament a year ago—whether on growth forecasts or public wage bills—are now addressed in this budget,” Sarupen noted, underscoring the DA’s growing influence in the GNU. Finance Minister Enoch Godongwana acknowledged the DA’s evolving role, even joking that governance had served as a “reality check” for some coalition partners.
However, the DA faces scrutiny for its dual strategy of cooperating with the ANC on fiscal policy while legally challenging key budget provisions. The party recently filed a court application to block a proposed 0.5% VAT increase, citing procedural flaws in Parliament’s legislative process. ActionSA has accused the DA of hypocrisy, pointing out that Sarupen helped draft the initial budget, which included a VAT hike later revised after GNU negotiations.
Zille defended the DA’s stance, stating the legal challenge aims to ensure parliamentary accountability rather than oppose the VAT increase outright. “The DA is working to ensure decisions constitutionally assigned to Parliament are made lawfully,” she said during a briefing outside the Western Cape High Court.
Sarupen’s balancing act—advocating DA policies while adhering to Treasury mandates—has drawn mixed reactions. Some GNU members, including the EFF, oppose the DA’s legal maneuvers, warning they could jeopardize critical funding. Treasury estimates the VAT hike would generate R13.5 billion in 2025/26, and Godongwana cautioned that delays could lead to social spending cuts or higher borrowing.
Meanwhile, Sarupen has faced internal DA pressure to justify support for contentious policies, such as a phased 16% VAT increase. He recently assured Parliament that Treasury consulted the Fiscal and Financial Commission (FFC) during budget preparations, though FFC Chair Patience Mbava questioned the depth of these consultations.
As the DA navigates governance, Sarupen’s technical expertise and political agility remain vital. “Ashor’s work shows how opposition-turned-governing parties can drive reform without compromising principles,” Zille remarked, highlighting his strategic value.
However, the DA’s ability to maintain this balance—promoting fiscal discipline while addressing public discontent over austerity—will likely determine its longevity in the GNU. With the VAT case pending and coalition tensions rising, Sarupen’s next moves could prove pivotal in shaping South Africa’s economic trajectory.
