Treasury’s Emergency Budget has no money for the national Covid-19 response
25 June 2020
The Democratic Alliance (DA) will write to the Speaker of the National Assembly, Thandi Modise, to request that time be set aside for Health Minister, Zweli Mkhize to make a ministerial statement in the National Assembly as per the rules of Parliament in light of the Finance Minister, Tito Mboweni’s budget speech on Wednesday.
Yesterday, Minister Mboweni, tabled the grimmest adjusted budget which was meant to be a direct response to the economic crisis brought on by the Covid-19 pandemic.
More importantly, there was an expectation for Minister Mboweni to give detail on the R20 billion that was announced by President Cyril Ramaphosa, that would be allocated to fund the health response across the provinces. However, it was revealed in the budget that there is no new money for this. Provinces would have to fund the additional expenses they have had to incur from the existing provincial budget and through slashing of conditional grants meant for service delivery.
It is now important that Minister Mkhize explains to Parliament how provinces went from expecting R20 billion that would be divided up across the country in an equitable fashion, to absolutely no new money except for the R500 million conditional grant that is meant for a basket of services, also funded from existing money in the provinces.