Finance Minister Announces Supplementary Budget

By: Precious Lesupi

On June 24th, Minister of Finance, Tito Mboweni announced a supplementary budget in response to the Corona virus pandemic.

The budget, according to the minister is purposed to bring in an Adjustment Appropriation Bill and a Division of Revenue Amendment Bill. It also aims to formalis√© the two tax bills as an attempt to give effect to the department’s response.

“The supplementary budget sets out a road map to stabilise debt, by improving our spending patterns, and creating a foundation for economic revival”, Mboweni mentioned. Most of the department’s energy and resources has thus far been focused on the COVID-19 pandemic and so they need to work harder to be ready with sustainable measures once the storm ends.

“Over 18 million South Africans have received a temporary COVID-19 grant,” the minister said. The roll out of the short-term Special Relief Distress grant will temporarily support those without an income. However, all these measures will come to an end in October.

The supplementary budget among others, proposes R21.5 million for COVID-19 related health care spending. It also proposes a further allocation of R12.6 billion to services at the Frontline of the country’s response to the pandemic

“Our enormous investment needs cannot be delivered by the government alone,” Mboweni said. The department also urged the private sector to reduce long-term interest rates to allow businesses and households to drive faster economic growth.

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