- A large group of economists has written to MPs asking them to reject the supplementary budget, which they say undermines President Cyril Ramaphosa’s promises.
- They say the budget reneges on the president’s R500-billion rescue package announced during the lockdown, instead presenting a net increase to non-interest spending.
- They also believe some reprioritisations are “dangerous”.
- Read their letter in full below.
Attention: Standing Committee on Finance
We are writing as a group of economists and economic policy analysts to recommend your rejection of the Supplementary Budget tabled by the Minister of Finance on Wednesday 24 June 2020.
The Budget reneges on President Cyril Ramaphosa’s R500 billion rescue package announced on 21 April 2020. The Budget undermines the constitutional obligation to progressively advance the rights of all.
As we noted in our Open Letter to the President on 30 March 2020, South Africa faces an unprecedented crisis. That crisis has become clearer. The Minister projected a fall in GDP of 7.2%, and estimates of jobs at risk vary to as high as two million. Millions will be plunged deeper into poverty.
Continue reading: https://www.news24.com/fin24/opinion/read-in-full-budget-breaks-president-ramaphosas-promise-economists-letter-to-mps-20200701
