Africa Government News Headlines

Government adopts zero-budgeting approach to cut spending

Finance Minister Tito Mboweni has announced a zero-budgeting approach that will see government cutting spending on programmes it can no longer afford. Mboweni said this when he tabled the Supplementary Budget Review at the National Assembly on Wednesday. The budget was necessitated by President Cyril Ramaphosas announcement that government would spend R500 billion to support the economys resuscitation following the outbreak of novel Coronavirus. He said Cabinet, under the leader

7 Days(s) Ago
R100 billion set aside to respond to COVID-19 jobs challenge

Finance Minister Tito Mboweni says the National Treasury has set aside R100 billion to support governments response to job creation. He said this when he tabled the Supplementary Budget Review to the National Assembly on Wednesday. His announcement came a day after Statistics SA announced that unemployment has gone up to 30.1% in the first quarter of the year. The figures from yesterday show that unemployment is our single greatest challenge. The Economic Support P

7 Days(s) Ago
Projects postponed, funds redirected to COVID-19

In preparing the 2020 Supplementary Budget, National Treasury and national departments have conceded that certain projects and programmes will have to be postponed from the 2020/21 financial year. National Treasury revealed this in the Supplementary Budget Review report delivered by Finance Minister Tito Mboweni on Wednesday. The document reveals that spending was adjusted by removing funds underspent due to delays caused by the lockdown from the baselines of affected department

7 Days(s) Ago
Treasury expects a R300 billion tax revenue shortfall

Finance Minister Tito Mboweni says government expects to miss its tax revenue target by over R300 billion this year. The Minister said this when he tabled the Supplementary Budget Review to the National Assembly on Wednesday. The budget was necessitated by President Cyril Ramaphosas announcement that government would spend R500 billion to support the economys resuscitation following the outbreak of novel Coronavirus. Gross tax revenue collected during the first two months of 202

7 Days(s) Ago
Budget share revised

The National Treasury has revised the 2020 Budget national share from R758 billion to R790 billion, Finance Minister Tito Mboweni has revealed while delivering his Supplementary Budget on Wednesday. The revision of the budget will also see theprovincial share decrease from R649 billion to R645 billion. [The] local government share increases from R133 billion to R140 billion, he said. Local government, he said, is at the heart of South Africas response to the COVID-19 pand

7 Days(s) Ago
Economy expected to contract by 7.2% this year

Finance Minister Tito Mboweni says as a result of the COVID-19 pandemic, the countrys economy is projected to contract by 7.2% in 2020. Mboweni said this when he tabled the Supplementary Budget Review on Wednesday. This is the largest contraction in nearly 90 years. Inflation will likely register 3% in 2020, in line with the outcome of this morning. Commodity price increases and a weaker oil price have softened the blow, but as a small open economy reliant on exports, we

7 Days(s) Ago
Infrastructure expenditure still a priority

While the COVID-19 pandemic is likely to derail government expenditure on infrastructure projects, Finance Minister Tito Mboweni has told Parliament that the State would have to resume these post-lockdown. Delivering the Supplementary Budget virtually on Wednesday, the Minister said post the pandemic, government will be required to build high-quality physical bridges, roads, railways, ports and other infrastructures. Infrastructure, he said, will be the fly wheel by which the co

7 Days(s) Ago
Loan guarantee scheme to include business restart option

As the country has moved from a hard lockdown to advanced level three lockdown and most of the economy is opening up again, the COVID-19 loan guarantee scheme will be expanded to help businesses restart. Finance Minister Tito Mboweni said this when he tabled National Treasurys Supplementary Budget Review to the National Assembly on Wednesday. The budget was necessitated by President Cyril Ramaphosas announcement that government would spend R500 billion to support the economys resuscita

7 Days(s) Ago
Government to borrow $7 billion as debt rises

Finance Minister Tito Mboweni says government will need to borrow US$7 billion from international finance institutions as one of the measures to cover the budget hole brought about by South Africas response to the COVID-19 pandemic. Also, measures and reforms would need to be implemented to narrow public debt post the pandemic, including a restrain on spending and improving revenue collection. Mboweni said this when he tabled the National Treasurys supplementary budget in the Na

7 Days(s) Ago
R21.5bn set aside for COVID-19 health, frontline services

National Treasury has set aside R21.5 billion for COVID-19-related healthcare spending for health and frontline services, as government continues to treat and contain the spread of the pandemic. The Minister revealed this while virtually delivering his Supplementary Budget on Wednesday. The budget was necessitated by President Cyril Ramaphosas announcement that government would spend R500 billion to support the economys resuscitation following the outbreak of novel Coronavirus.

7 Days(s) Ago
More water tanks rolled out in Gauteng

The Department of Water and Sanitation (DWS) in Gauteng has increased the number of water tanks to water stressed communities to 2 244, as government eases the lockdown regulations under alert level 3. As the regulations are being eased, many businesses, especially informal ones, are expected to open and start operations, and this may increase the need for more water. In addition to supplying water tanks to congested communities, schools are also receiving water tanks to ensure

7 Days(s) Ago
Public Enterprises rallies support for SAA rescue plan

The Department of Public Enterprises (DPE) has urged creditors, employees and other stakeholders of South African Airways (SAA) to vote in support of the business rescue plan of the airline to avoid liquation. It is the only pathway for rescue and restructuring of SAA, the department said. DPE said it believes the approval of the business rescue plan would help creditors and employees to be "co-creators" of a new airline and ensure a strong base is maintained for the growth of t

7 Days(s) Ago