NEW YORK - South Africa’s shifting budget priorities will provide roughly half of the R50 billion in stimulus spending it plans to make by the end of its fiscal year in March, Finance Minister Nhlanhla Nene told Reuters.
The rest of the fund would come from internal development finance institutions (DFI), he said on Wednesday, outlining for the first time the basic structure of the fund.
Neme said half of the funds would come from reprioritizing money away from underperforming government programs and the rest from internal DFIs.
“We don’t want whatever is on the chopping block to be announced before the process has concluded,” he said after an investor forum on the sidelines of the United Nations General Assembly meeting in New York.
The government has said it would also launch a R400 billion “medium-term” infrastructure fund, that would be spent over three years, Nene noted.