Budget statement looks promising

It is promising to be a busy statement with funds urgently needed to deal with existing crises; the ramping up of vaccination programmes; the bailout of state-owned enterprises; and releasing huge amounts to cover unpaid e-toll debt.

Godongwana must also adjust economic forecasts from the February figures in the light of the current investment drought and pressure on economy. The budget will come just days after the local government elections to be held on 1 November.

The MTBPS is a mid-term stopover and refill to enable reflection and make adjustments on budget allocations since February’s main budget.

Of significance in the process is addressing emergencies and unavoidable departmental spending shortfalls.

Godongwana already hinted at his priorities in the MTBPS that included more funding to address the impact of the recent unrest in KwaZulu-Natal and Gauteng, for which he asked parliament to approve an addition R32 billion.

The bulk of the money would support the SA Special Risks Insurance Association (Sasria), a sole state-owned insurer that must pay losses incurred by individuals and businesses in the July looting and arson.

Last week, Deputy President David Mabuza announced that Sasria would fork out more than R10 billion to assist businesses, something he hoped would help boost the economy.

Sasria claims liability emanating from the unrest amounted to R20 billion.

The ramping up of the vaccination roll-out to achieve sufficient population protection levels and reduce hospitalisations will require additional funding.

With the SA Airways issue being addressed through buying of a stake, the government is still saddled with having to bail out cash-strapped arms manufacturer Denel.

The state firm was unable to pay staff salaries for many months after its funds dried up. Godongwana will also update National Treasury’s economic forecasts, particularly in the light of the economic downturn caused by the riots and extension of the social relief of distress grant for the unemployed.

The payment is temporary provision of aid intended for persons who are in dire need due to unemployment.

– ericn@citizen.co.za