Mini budget: Over R12 billion allocated for job creation

This has been announced by Finance Minister Tito Mboweni,  as he tabled his medium-term budget policy statement in Parliament. 

The Provincial Equitable Share is augmented by R7 billion to support jobs at fee-paying public schools and government-subsidised independent schools.

"R600 million goes to employ early childhood development and social workers. Incidentally, the social workers have been very important in this period," says Mboweni. 

He says government has had to expand social protection to reach the poorest South African households. 

During the lockdown, cash grants were paid to over 22 million people, nearly half of the population. 

The Cabinet has decided to extend the Social Relief of Distress grant to the end  of January 2021.

"This grant is so effective in reaching the unemployed, we propose to redirect R6.8 billion from the public employment programme allocation" he adds. 

READ: SA's economy expected to shrink by 7.8%

The temporary increases in other grants will unfortunately have to come to an end.

Mboweni also says it's not true that the R500 billion relief package was all lost to corruption. 

He gives a breakdown of the fiscal relief package. 

"More than R30 billion for health and other frontline services, support vulnerable households which is now in excess of R50 billion. More than R40 billion for wage protection through the UIF." 

"Around R100 billion for job creation initiatives, which will now be spread over the MTEF,  R200 billion for a credit guarantee scheme and R20 billion towards municipalities to assist them with COVID-19 related activities," he says. 

"R70 billion towards emergency tax measures. That makes up R500 billion." 

Among other things, Mboweni has announced measures to cushion the crippling economy and gradually see growth.