Mboweni to deliver COVID-19 budget speech
Finance Minister Tito Mboweni is set to deliver his emergency budget to the nation on Wednesday.
"A Supplementary Budget has been necessitated by President Cyril Ramaphosa's announcement that government would spend R500 billion to support the economy following the outbreak of the coronavirus," says the National Treasury.
The severe impact to the economy, which is projected to shrink by around 16%, coupled with South Africa's Junk status grade has forced the National Treasury to compile the budget containing a revised approach.
READ: Ramaphosa warns of 'tough times ahead'
Economist Mike Schussler says it's likely the minister will provide clarity around economic developments that could hit us hard in the long run.
"What we need to know from the minister is; how we achieve this? Where do we get the loans from? Where do we cut back on spending? What possible tax increases are there going to be in future?
"All these things will be revealed. We don't know if we are going to have all the answers in detail, but we will have at least the trends and the bigger picture going forward," says Schussler.
