WATCH LIVE: Media Briefing by Finance Minister following the president's address
LIVE BLOG: Social grant top ups a temporary measure not permanent - Mboweni
Finance Minister Tito Mboweni will on Friday afternoon provide details on the R500 billion COVID-19 economic relief packages announced by President Cyril Ramaphosa earlier this week.
Asked how are these initiatives going to be funded?
Mboweni: Reprioritisations and removing from the budget which can be postponed will be postponed and those funds will be redirected to the COVID-19 relief package. Mboweni mentions tourism for example and says funds from the Department of Tourism will be redirected because there is no tourism activity happening in the country.
What do we know about this R500 billion relief package so far?
1. So far, we know that around R130 billion of the budget will be reprioritised within the current budget.
2. The rest of the funds will be raised from both local sources, such as the Unemployment Insurance Fund, and from global partners and international financial institutions.
3. R50 billion will be directed towards relieving the plight of those who are most desperately affected by the coronavirus.
4.This means that child support grant beneficiaries will receive an extra R300 in May and from June to October they will receive an additional R500 each month.
5. All other grant beneficiaries will receive an extra R250 per month for the next six months.
6. Unemployed who do not receive grant or UIF payment will get R350 for six months.
7. An additional R100 billion will be set aside for the protection of jobs and to create jobs.
8. R40 billion has been set aside for income support payments for workers whose employers are not able to pay their wages.
9. An additional amount of R2 billion will be made available to assist SMEs and spaza shop owners and other small businesses.
10. The IDC facility to support companies to procure or manufacture personal protective equipment has been utilised in the past few weeks, with finance of R162 million approved to date.
South Africa has been seeing an increase in the number of COVID-19 cases, mainly due to the mass screening and testing by government to help curb the virus from further spreading.
As of Thursday, the Department of Health announced that the country's COVID-19 cases were now 3,953 with 75 deaths mainly from the Western Cape and KwaZulu-Natal.
The Western Cape overtook Gauteng as the epicentre of the virus.
The president announced that the recovery plan consists of three phases with the first phase began in mid-March when he declared the coronavirus pandemic as a national disaster, which included tax relief, the release of disaster relief funds, emergency procurement, wage support through the UIF and funding to small businesses.