Finance Minister Tito Mboweni on Wednesday announced changes to the division of revenue presented in the Budget Speech increasing the the national share for 2020/21 to R790 billion from R758bn. Photo: Kopano Tlape/GCIS
Finance Minister Tito Mboweni on Wednesday announced changes to the division of revenue presented in the Budget Speech increasing the the national share for 2020/21 to R790 billion from R758bn. Photo: Kopano Tlape/GCIS

Mboweni increases national revenue share to R790 billion

By Sizwe Dlamini Time of article published Jun 25, 2020

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JOHANNESBURG – Finance Minister Tito Mboweni on Wednesday announced changes to the division of revenue presented in the Budget Speech increasing the the national share for 2020/21 to R790 billion from R758bn.

The provincial share was decreased from R649bn to R645bn and the local government share increased from R133bn to R140bn.

Mboweni said local government was at the heart of the government’s response to the Covid-19 pandemic. “Accordingly, an additional R11 billion is allocated to local government through the equitable share. A further R9 billion will be reprioritised within allocated conditional grants to fund additional water and sanitation provision and the sanitisation of public transport.

“Municipalities will adjust their budgets to take into account the sharp decline in revenue as a result of the pandemic. We urge communities to hold councils accountable for the spending of Covid‐19 funds,” he said.

The Minister said the National Treasury would also monitor the spending through monthly and quarterly reports.

Mboweni said after a slow start, including all the detailed and technical legal preparations, the loan guarantee scheme was expanding rapidly. 

“In its first month, the scheme lent over R10 billion. Many more applications are being processed, and lending is expected to rise significantly.

“Now that we have moved to an advanced Level 3, most of the economy is ‘open for business’. We must help businesses to get moving! The loan guarantee scheme also includes a business restart option, for businesses who need support to get up and going after the lockdown. This will apply to all businesses including those with turnover of more than R300 million.

“We are also finalising amendments to the repayment holiday and turnover limit, and relaxing terms and conditions to support lending. The South African Reserve Bank and the commercial banks are finalising the revised legal arrangements and will make announcements shortly,” he said.

Mboweni said work was also continuing to expand the scheme to non‐bank lenders.

BUSINESS REPORT

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