Finance Minister Tito Mboweni will present a special adjustment budget on June 24 to make provision for additional spending due to measures to contain the spread of coronavirus.
National 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 the 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 the parliament and get approval for this type of reallocations of fiscal spending.”
Stimulus package
Last month, President Cyril Ramaphosa announced a R500 billion social and economic relief plan which seeks to stimulate the economy, protect jobs, and alleviate hunger.
Ramaphosa announced that all unemployed South Africans will be entitled to a special grant of R350 for the next six months.
The COVID-19 Social Relief of Distress grant will benefit individuals who are currently unemployed and do not receive any other form of a social grant or Unemployment Insurance Fund-payment.
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