Finance Minister, Tito Mboweni says working under the leadership of president Cyril Ramaphosa have calibrated a fiscal package of approximately R500 billion which will bring additional life into the whole financial system.
“Governor Kganyago has already unveiled a monetary and policy package of approximately another R500 billion. This will bring additional life into the whole financial system,” he said.
Mboweni says a combined fiscal and monetary policy package is over R800 billion, which is a major fiscal and monetary policy response.
The main components of the fiscal response is classified in five components which includes:
- An extraordinary health budget of R20 billion to respond to corona virus
- The relief of hunger and social distress
- Support for companies and workers
- Phased re-opening of the economy
- The supportive monetary and financial market measures
Minister Mboweni also adds that from June to October caregivers will get an additional R500 each month, while all other grants will be topped by R250 per month for the next six months.
Mboweni says the finance teams are working with the Department of Social Development, Banks for easier payment systems to be used.
“Our teams are working closely with the department of Social Development, SASSA and teams from the Payments Association of South Africa, the Banking Association and others to identify easier payment systems to be used,” he said.
The minister also adds that he will be tabling a revised budget bill to Parliament to deal with all the measures which will be accommodated within the current framework in the next few weeks.