Government resources already constrained: Economist
An economist has expressed skepticism on the stimulus package – which details President Cyril Ramaphosa is expected to reveal on Friday.
The aim of the plan is to stimulate various sectors of the economy with the intention of creating more jobs.
The plan could cost the country about R45 billion, and will be funded through the re-allocation of existing budget.
Economist Jeff Schultz says government resources are already constrained.
“We are told that the stimulus package is going to be using existing fiscal resources, but am skeptical on the ability of the National Treasury to be able to shift around much more on the expenditure side – given that it has already made big shifts in February budget.”
“So my skepticism lies in are we going to try to do things better, what the stimulus package is going to be directed at,” says Schultz.