Treasury won’t borrow money to fund multibillion relief package
Finance Minister Tito Mboweni says South Africa won’t undertake any additional debt to finance its multibillion support package.
This comes after Treasury announced it would provide up to R36 billion in aid for poor households and employees hardest hit by the Covid-19 pandemic.
Treasury was also responding to the economic crisis caused by a week of unrest in parts of the country earlier this month.
Mboweni outlined the relief measures on Wednesday, joined by National Treasury executives, including Director-General Dondo Mogajane, who insisted alternative funding revenues would be explored.
“All in all there’s about R36 billion worth of support that we are putting on the table that we will be interacting within the parliamentary system,” said Mogajane.
“Immediately we will set certain processes in place for the Department of Social Development to access the R26.7 billion as part of this package that will make sure that we support businesses and vulnerable households.”
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He added Treasury is looking at existing resources.
“We are not going to be going for borrowing at all, that must be very clear.
“This is not in any way going to include or increase our borrowing requirement. We will obviously make sure that where need be, in terms of the package of measures, we have reprioritised certain budgets in particular within the Department of Small business development and DTIC [Department of Trade, Industry and Competition].”
Mogajane also revealed Treasury had set aside more than R2 billion for small businesses.
Listen to Mogajane below:
