JOHANNESBURG - The Democratic Alliance has announced that they reject the budget due to the proposed 0.5 percentage point VAT increase.
As a result, talks between the ANC and DA have come to a standstill.
ANC Parliament Chief Whip, Mdumiseni Ntuli, says that the DA's demands are beyond the scope of the budget.
Ntuli says the DA has demanded the closure of the National Youth Development Agency.
In addition, they have called for the reduction of spending and have asked for an extension of the duties of the Finance Deputy Minister, who is a DA Minister.
Ntuli says that of the nine GNU members, seven have reached an agreement. Talks are continuing with the Freedom Front Plus, meanwhile, they have collapsed with the DA.
The Chief Whip says the collapse is due to the DA constantly running to the media instead of discussing matters with the ANC in good faith.
The DA were due to hold a briefing stating their stance on Tuesday; however, national spokesperson Karabo Khakau said they had to delay as the party attempts to reestablish talks.