South African Panel Backs Fiscal Plan, Wants VAT-Hike Review

A panel of South African lawmakers approved a fiscal framework that underpins the national budget, with a condition that Finance Minister Enoch Godongwana review his proposal to increase taxes.

The rand fell as the process heightened uncertainty about how a continuing dispute between the coalition government’s two main parties over the budget will play out. Lawmakers are scheduled to vote on Wednesday on the framework, which establishes economic policy, revenue projections and limits on government spending.