South Africa has unleashed its biggest once-off stimulus injection into the struggling economy in response to the Covid-19 pandemic that has led to a lockdown of the country for the past 25 days.

President Cyril Ramaphosa's plan to inject R500 billion into a social and economic support package is the country's biggest one-time fiscal outlay and is almost ten times the amount spent in preparation for hosting the Soccer World Cup ten years ago.

"The impact of the coronavirus requires an extraordinary coronavirus budget – of around R500 billion – to direct resources towards fighting the pandemic," he told the nation in a televised address on Tuesday.

The support package bolsters spending from a mere 0.1% of GDP to 10% of GDP.

The response to the pandemic, which has seen economists forecast a contraction as high as 10% in the economy, comes after engagements with several stakeholders over the past week – including Cabinet, the National Coronavirus Command Council, the President's Coordinating Council, and the National Economic Development and Labour Council.

they have money,,,,,

NwaNimo1:
they have money,,,,,

South African govt will be increase PAYE tax of employees to fund this corona virus crisis.

zhike:


South African govt will be increase PAYE tax of employees to fund this corona virus crisis.

all children under the age of 21 from parents that are unemployed will get grants.
grants for pensioners increased.
grant for disabled increased.
all home that are poor will get food parcels.
all people between the age of 18 and 65 who are unemployed will get grants.

Hmmmm

What is Nigeria doing to stop poverty in Nigeria.

Some stupid will compare South Africa and Nigeria, while South Africa is a developed country and Nigeria is a third world country.

It will be funded in part by international finance institutions and by redirecting funds already allocated in the current budget.
The main interventions announced on Tuesday are:
R20 billion directly for fighting the pandemic. This includes spending on protective equipment for healthcare workers, additional ventilators, staffing, medicine, field hospitals and community screening.
R20 billion for municipalities for the provision of emergency water supplies, sanitising public transport facilities as well as feeding and housing the homeless.
R50 billion towards new grants, grant top-ups and other measures to relieve social distress.
R100 billion for the protection of jobs and job creation.
R40 billion for income support payments for workers whose employers cannot pay wages.
R2 billion to assist spaza shop owners and small businesses.
A R200 billion loan guarantee scheme from the banks, National Treasury and SA Reserve Bank.
R70 billion in tax relief schemes for distressed businesses.
In addition, taxpayers who donate to the Solidarity Fund will be able to claim 10% as a percentage of their taxable income.
'Devastating' impact on economy
Ramaphosa said the government's "urgent and dramatic steps" taken to stop Covid-19 have saved tens of thousands of lives, and were "absolutely necessary".
But, he added, this was having a devastating effect on the economy.
There are fears this will be enough to tip economically vulnerable households below the poverty line.
Some estimates have put the total damage to the economy as a result of the Covid-19 lockdown at a downturn of between 6 to 8%, with a million job losses.
READ | Unemployed will get R2 100 each in Covid-19 payouts over 6 months, children R2 800 extra
A 2018 study found only a quarter of South Africans can be considered middle class or of the elite class, while the rest either live in poverty or close to it. The same study found three out of four children under the age of 15 live in poverty.
Protests over food shortages have already been seen across the country, and the SA Social Security Agency is currently overwhelmed with applications for food parcels, receiving 9 000 calls an hour.
Grants and relief for impoverished
Civil society has been vocal in its call for greater relief, especially for the unemployed and informally employed.
So perhaps the most significant measure introduced by Ramaphosa was the use of the existing social security infrastructure to distribute millions of rand to the poorest in society via grants.
A number of institutions, academics, activists and economists had called for some form of a grant, either in the form of a new grant, a top-up of the child support grant or all grants, or the distribution of cash to the poorest in society.
Ramaphosa appears to have adopted all of these suggestions which include:
A six-month temporary coronavirus grant.
An increase of the child support grant of R300 in May and R500 from June to October.
An extra R250 for other grant beneficiaries for the next six months.
A Covid-19 social relief of distress grant of R350 per month for six months for unemployed people who do not receive any other grant or Unemployment Insurance Fund payment.
The roll-out of vouchers and cash transfers to those in need for food assistance.
The distribution of 250 000 food parcels in the next two weeks (a partnership between the Solidarity Fund, NGOs, community-based organisations and the Department of Social Development).
Funding
The R500 billion plan will be financed by R130 billion that will be reprioritised from the current budget.

God is south african..

Ngozi don start work with them. Very nice.


The bolded caught my attention:

It will be funded in part by international finance institutions and by redirecting funds already allocated in the current budget.
The main interventions announced on Tuesday are:

Sadly enough and in relation to the above, we no even get funds to redirect because dem don share and embezzle all for themselves.

But trust me, this COVID19 will force dem all to vomit and relinquish their lots because the same government will need every cash it can muster.

zhike:
What is Nigeria doing to stop poverty in Nigeria.

Some stupid will compare South Africa and Nigeria, while South Africa is a developed country and Nigeria is a third world country.

south africa has a population of around 60 million, nigeria population is closing 200 million, do the maths

zhike:
What is Nigeria doing to stop poverty in Nigeria.

Some stupid will compare South Africa and Nigeria, while South Africa is a developed country and Nigeria is a third world country.

Who told you that SA is developed? That country is a developing country

Kyase:
south africa has a population of around 60 million, nigeria population is closing 200 million, do the maths

Forget population that country has a responsible leader.

vandalZA:

It will be funded in part by international finance institutions and by redirecting funds already allocated in the current budget.
The main interventions announced on Tuesday are:
R20 billion directly for fighting the pandemic. This includes spending on protective equipment for healthcare workers, additional ventilators, staffing, medicine, field hospitals and community screening.
R20 billion for municipalities for the provision of emergency water supplies, sanitising public transport facilities as well as feeding and housing the homeless.
R50 billion towards new grants, grant top-ups and other measures to relieve social distress.
R100 billion for the protection of jobs and job creation.
R40 billion for income support payments for workers whose employers cannot pay wages.
R2 billion to assist spaza shop owners and small businesses.
A R200 billion loan guarantee scheme from the banks, National Treasury and SA Reserve Bank.
R70 billion in tax relief schemes for distressed businesses.
In addition, taxpayers who donate to the Solidarity Fund will be able to claim 10% as a percentage of their taxable income.
'Devastating' impact on economy
Ramaphosa said the government's "urgent and dramatic steps" taken to stop Covid-19 have saved tens of thousands of lives, and were "absolutely necessary".
But, he added, this was having a devastating effect on the economy.
There are fears this will be enough to tip economically vulnerable households below the poverty line.
Some estimates have put the total damage to the economy as a result of the Covid-19 lockdown at a downturn of between 6 to 8%, with a million job losses.
READ | Unemployed will get R2 100 each in Covid-19 payouts over 6 months, children R2 800 extra
A 2018 study found only a quarter of South Africans can be considered middle class or of the elite class, while the rest either live in poverty or close to it. The same study found three out of four children under the age of 15 live in poverty.
Protests over food shortages have already been seen across the country, and the SA Social Security Agency is currently overwhelmed with applications for food parcels, receiving 9 000 calls an hour.
Grants and relief for impoverished
Civil society has been vocal in its call for greater relief, especially for the unemployed and informally employed.
So perhaps the most significant measure introduced by Ramaphosa was the use of the existing social security infrastructure to distribute millions of rand to the poorest in society via grants.
A number of institutions, academics, activists and economists had called for some form of a grant, either in the form of a new grant, a top-up of the child support grant or all grants, or the distribution of cash to the poorest in society.
Ramaphosa appears to have adopted all of these suggestions which include:
A six-month temporary coronavirus grant.
An increase of the child support grant of R300 in May and R500 from June to October.
An extra R250 for other grant beneficiaries for the next six months.
A Covid-19 social relief of distress grant of R350 per month for six months for unemployed people who do not receive any other grant or Unemployment Insurance Fund payment.
The roll-out of vouchers and cash transfers to those in need for food assistance.
The distribution of 250 000 food parcels in the next two weeks (a partnership between the Solidarity Fund, NGOs, community-based organisations and the Department of Social Development).
Funding
The R500 billion plan will be financed by R130 billion that will be reprioritised from the current budget.

Thanks for this info.

MduZA:
God is south african..

lol

zhike:


all children under the age of 21 from parents that are unemployed will get grants.
grants for pensioners increased.
grant for disabled increased.
all home that are poor will get food parcels.
all people between the age of 18 and 65 who are unemployed will get grants.

Children under the age of18 who are already on child grant receiving R440 per month which is equal to 30 dollars, will see an increase of R300 this May another increase of R500 by June for, which total to R1240 and is equal to 83 dollars per month for 6 months. All between the ages of 18 & 60 will receive R350. Those who are already on government grant for disability and older than 60 years will receive an increase R250 from their monthly grant of R1850 and R1750 making a total of R2000 which is equal to 135 dollars.

daddytime:
Ngozi don start work with them. Very nice.


The bolded caught my attention:

It will be funded in part by international finance institutions and by redirecting funds already allocated in the current budget.
The main interventions announced on Tuesday are:

Sadly enough and in relation to the above, we no even get funds to redirect because dem don share and embezzle all for themselves.

But trust me, this COVID19 will force dem all to vomit and relinquish their lots because the same government will need every cash it can muster.

That is the issue with Nigeria, Govt leaders still all government finances.

Kyase:
south africa has a population of around 60 million, nigeria population is closing 200 million, do the maths

USA has a population of 350 million and is successful. what is your story?

edoairways:

Who told you that SA is developed? That country is a developing country

No at all, what is the different between South Africa and developed countries. is Spain, Italy, etc developed than South Africa?

edoairways:

Forget population that country has a responsible leader.

Indeed Ramaphosa is a good leader.

He cut down his presidential with 50%.
he refused to use presidential house to save cost.
Remember he did not become president because he wanted money, he was a billionaire already.

vandalZA:
Children under the age of18 who are already on child grant receiving R440 per month which is equal to 30 dollars, will see an increase of R300 this May another increase of R500 by June for, which total to R1240 and is equal to 83 dollars per month for 6 months. All between the ages of 18 & 60 will receive R350. Those who are already on government grant for disability and older than 60 years will receive an increase R250 from their monthly grant of R1850 and R1750 making a total of R2000 which is equal to 135 dollars.

thanks a lot for this info.

South Africa the Giant of Africa.

Kyase:
south africa has a population of around 60 million, nigeria population is closing 200 million, do the maths

Nigeria population is 210mill.

vandalZA:

It will be funded in part by international finance institutions and by redirecting funds already allocated in the current budget.
The main interventions announced on Tuesday are:
R20 billion directly for fighting the pandemic. This includes spending on protective equipment for healthcare workers, additional ventilators, staffing, medicine, field hospitals and community screening.
R20 billion for municipalities for the provision of emergency water supplies, sanitising public transport facilities as well as feeding and housing the homeless.
R50 billion towards new grants, grant top-ups and other measures to relieve social distress.
R100 billion for the protection of jobs and job creation.
R40 billion for income support payments for workers whose employers cannot pay wages.
R2 billion to assist spaza shop owners and small businesses.
A R200 billion loan guarantee scheme from the banks, National Treasury and SA Reserve Bank.
R70 billion in tax relief schemes for distressed businesses.
In addition, taxpayers who donate to the Solidarity Fund will be able to claim 10% as a percentage of their taxable income.
'Devastating' impact on economy
Ramaphosa said the government's "urgent and dramatic steps" taken to stop Covid-19 have saved tens of thousands of lives, and were "absolutely necessary".
But, he added, this was having a devastating effect on the economy.
There are fears this will be enough to tip economically vulnerable households below the poverty line.
Some estimates have put the total damage to the economy as a result of the Covid-19 lockdown at a downturn of between 6 to 8%, with a million job losses.
READ | Unemployed will get R2 100 each in Covid-19 payouts over 6 months, children R2 800 extra
A 2018 study found only a quarter of South Africans can be considered middle class or of the elite class, while the rest either live in poverty or close to it. The same study found three out of four children under the age of 15 live in poverty.
Protests over food shortages have already been seen across the country, and the SA Social Security Agency is currently overwhelmed with applications for food parcels, receiving 9 000 calls an hour.
Grants and relief for impoverished
Civil society has been vocal in its call for greater relief, especially for the unemployed and informally employed.
So perhaps the most significant measure introduced by Ramaphosa was the use of the existing social security infrastructure to distribute millions of rand to the poorest in society via grants.
A number of institutions, academics, activists and economists had called for some form of a grant, either in the form of a new grant, a top-up of the child support grant or all grants, or the distribution of cash to the poorest in society.
Ramaphosa appears to have adopted all of these suggestions which include:
A six-month temporary coronavirus grant.
An increase of the child support grant of R300 in May and R500 from June to October.
An extra R250 for other grant beneficiaries for the next six months.
A Covid-19 social relief of distress grant of R350 per month for six months for unemployed people who do not receive any other grant or Unemployment Insurance Fund payment.
The roll-out of vouchers and cash transfers to those in need for food assistance.
The distribution of 250 000 food parcels in the next two weeks (a partnership between the Solidarity Fund, NGOs, community-based organisations and the Department of Social Development).
Funding
The R500 billion plan will be financed by R130 billion that will be reprioritised from the current budget.

I need more details on the bolded .I heard some people say it comes as a food voucher instead cash.How true is this?

zhike:


Indeed Ramaphosa is a good leader.

He cut down his presidential with 50%.
he refused to use presidential house to save cost.
Remember he did not become president because he wanted money, he was a billionaire already.

and did buhari told you he came to make money?

buhariguy:
Nigeria population is 210mill.

toh you see

zhike:


USA has a population of 350 million and is successful. what is your story?

Nigeria is almost the size of California, stop the comparison abeg

sapientia:
South Africa the Giant of Africa.

indeed

JaceBlaze:


I need more details on the bolded .I heard some people say it comes as a food voucher instead cash.How true is this?

is 2 different things, there is food parcels for poor families and government grant for unemployed individuals.

buhariguy:
and did buhari told you he came to make money?

who spoke about Buhari?

Kyase:
Nigeria is almost the size of California, stop the comparison abeg

the fact is that any populatiob could be managed.

The problem of Nigeria is Nigerians, they keep electing wrong leaders and they also keep destroying country.
most of Nigerians are not paying Tax, they spend money outside Nigeria.

sapientia:
South Africa the Giant of Africa.

my brother nooooo! Nigeria is the Giant without the GI... Ant.

zhike:


the fact is that any populatiob could be managed.

The problem of Nigeria is Nigerians, they keep electing wrong leaders and they also keep destroying country.
most of Nigerians are not paying Tax, they spend money outside Nigeria.

now you are talking, we are the reflection of our leaders...
I always thought Buhari will be the saviour but as it stands, Buhari outperform GEJ only in some areas(two) in 6 years