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Writer's pictureMOKOENA KAMOGELO

President Ramaphosa announces R500 billion Covid-19 budget


With the overall coronavirus (Covid-19) cases now over the 3 000 mark in the country, president Cyril Ramaphosa says South Africa is in a second phase of the pandemic, and that the cabinet has therefore followed a risk adjusted approach with the return of economic activity, with the interest of containing the virus as well as getting people safely to work.

This was revealed when the President was addressing the nation on the impact of the pandemic and the way forward that has been decided on by the cabinet with regards to the issue, on Tuesday evening.

Among other announcements made was that of an additional R20 billion that will be made available to municipalities for the provision of emergency services, water supply, increased sanitation, public transport and other facilities such as food and shelter for the homeless.

Government has also set aside R50 billion for those who are mostly affected by the virus. Ramaphosa said child support grant beneficiaries would receive an extra R300 in May and an additional R500 from June to October, while other grant beneficiaries would receive an extra R250 each month for the next six months.

A special Covid-19 social relief of distress grant amounting to R350 per month will be paid to individuals who are currently unemployed, do not receive any form of social grant or Unemployment Insurance Fund (UIF) payment.

Ramaphosa explained that the department of Social Development would issue the requirements that individuals will need to apply for this funding.

The president also said R40 billion had been set aside for income support for workers whose employers are unable to pay them during this pandemic. Funding will cover about 700 firms and 3 million employees.

Also announced was that the government is also working on additional support measures for vulnerable and affected sectors such as the taxi industry. Ramaphosa said in addition to existing tax relief measures will also be a four-month ‘tax holiday’ for companies’ skills development levy contributions, the fast tracking of VAT refunds and a three-month delay for filing and first carbon tax.

According to the president, ending the lockdown too early will be risking a massive and uncontrollable resurgence of the disease.

“We will therefore follow a phased approach, guided by the best available scientific evidence, to gradually lift the restriction on economic activity. As we do so, we remain to resolve and contain the transmission of the virus; we will therefore need to act with agility and flexibility in the weeks and months ahead and respond to the situation as it develops.”

The president also said there is still hope, that this crisis would not last forever and that there would come a time where things would be much better, but also warned that South Africa and the world would never be the same again.

Ramaphosa said this global reality has forced the country to forge a new economy that will require growing social compact among all role players such as business, labour, community and government, to restructure the economy and to achieve inclusive growth.

“We will forge a compact for radical economic transformation that ensures advances on the economic position of women, youth and people with disabilities, in an attempt to make our cities, towns and rural areas vibrant centres of economic activity.”

Ramaphosa concluded by saying he would also address the nation again on Thursday, to talk about the measures that will be taken to reopen the economy.


Cover image: www.ewn.co.za

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