Treasury working to limit fiscal deficit in face of virus shutdown
Reprioritisation, adjusting spending and postponing certain initiatives form part of the response
Fiscal policy alone cannot address the increasing pressure that SA faces under the Covid-19 lockdown, but the Treasury will continue working on proposals on how to deal with funding pressures created by the current crisis, director-general Dondo Mogajane said on Tuesday.
The Treasury is working to limit the fiscal deficit through reprioritisation, spending adjustments and postponement of certain initiatives in its bid to manage the effect a nationwide shutdown will have on the economy and the state’s budget.
The virus struck SA when its economy was already weak, having fallen into recession in the fourth quarter of 2019. Though Ramaphosa announced a range of measures to support the economy in the coming months, ranging from targeted support for small businesses to a series of tax measures, SA was already under strain before the virus hit...