South African Finance Minister Tito Mboweni gestures as he delivers his budget speech at the Parliament in Cape Town, South Africa, February 26, 2020.
Finance Minister Tito Mboweni will present a special budget adjustment on the 24th of June to make provision for additional spending due to measures to contain the spread of coronavirus.
Treasury published the special adjustment budget guidelines on its website which include the budget process to be followed.
The special budget follows President Cyril Ramaphosa’s announcement that government would provide R500 billion in fiscal support to deal with COVID-19.
Economist Iraj Abedian, says, “It was inevitable. As we all know, the President has made a lot of announcements and Treasury, to make this legal the National Treasury will have to resubmit a new Budget to Parliament and get approval for this type of re-allocations of fiscal spending.”
“A revised fiscal framework will also be presented, to account for substantial revenue losses emanating from the economic shock of the pandemic and subsequent lockdown,” Treasury said in a statement.
President Cyril Ramaphosa announced the rescue package in late April. It equates to 10% of GDP and includes higher welfare and unemployment grants as well as support for businesses.
Meanwhile, South Africa has recorded 219 COVID-19-related deaths – 13 more than the previous number.
The country now has 12 074 cases of the virus. This was announced by President Ramaphosa as he addressed the nation on government’s measures to combat the coronavirus