SA to allocate last R45bn of virus stimulus

Total package remains at R500bn, even though the supplementary budget process identified only R145bn for immediate allocation.
Government is counting on R120bn from multilateral lenders and development finance institutions to support its response to the pandemic. Image: Waldo Swiegers, Bloomberg

South Africa’s National Treasury will begin allocating the remaining R45 billion of a coronavirus-relief package in October.

While President Cyril Ramaphosa announced a R500 billion stimulus package April, the National Treasury only outlined plans to spend R455 billion in a special adjustment budget presented last month. The plans for the remainder will be outlined in the October medium-term budget policy statement and the February budget review.

Pressures in some departments, including those previously earmarked for budget reductions after Ramaphosa’s announcement, “the lack of readiness of certain projects, such as the job-creation programme, and a further deterioration in the fiscal position after the president’s announcement, resulted in adjustments to the announced intervention,” the National Treasury said in an emailed response to questions.

Source: National Treasury

The total stimulus package will remain at R500 billion, even though the supplementary budget process identified only R145 billion for immediate allocation, the Treasury said. The new grants will require a further reprioritisation of spending, it said

“The Treasury has taken a prudent approach to the budget by making allocations in line with credible plans and in a manner designed to mitigate the significantly worsened fiscal situation,” it said.

South Africa’s GDP will probably contract 7.2% in 2020, the most in almost nine decades, due to the coronavirus pandemic and restrictions put in place to curb its spread. The consolidated budget deficit is expected to surge to 15.7% of GDP this year and gross debt-to-GDP is likely to peak at 87.4% in 2023-24, according to government estimates.

Africa’s most-industrialised economy is counting on $7 billion (R120 billion) from multilateral lenders and development finance institutions to support its response to the pandemic.

So far, only the New Development Bank, which serves the Brics nations, has approved a $1 billion facility. The country asked the International Monetary Fund for a $4.2 billion loan at the end of April and plans to request up to $2 billion from the World Bank.

© 2020 Bloomberg L.P.

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Please give all R45BN to ASPEN Pharmacare.
I know im biased but its better than R45bn getting wasted, plus you receive a tablet / injectable and the money stays in the country…. mmmmm ….. something to think about TITO

Ha ha, note the “Land Bank equity “investment”” sneaked in to pay off the thieving cadres; again. Just the R3bn. Rogues.

This government does not have clue what they are doing…

Clearly nothing will change unless their is there is some form of divine intervention. We are all sitting back and watching how this country disintegrates, how value destruction and criminals coordinate for self enrichment.

How much of this relief fund is going where is should?
We need to Start blockchaining our Rands on an Open Ledger for all South Africans to see on a live basis where our money is going.

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