CAPE TOWN – President Cyril Ramaphosa announced that the government would, in the coming days, announce details of a stimulus package aimed at reigniting growth and creating jobs.
The president said this during a question and answer session in the National Assembly on Wednesday.
According to SAnews.gov.za, Ramaphosa said the government had been approached by business leaders across the economy insisting that they want to play and they are playing their part in growing the economy and creating jobs.
“They too see that the platform is burning. Instead of throwing their hands up in despair, they are determined to be part of the solution. In the coming days, Cabinet will be announcing details of the stimulus package to reignite growth and to establish the foundation of a sustained economic recovery plan.
“This package reprioritises funds towards initiatives that are labour intensive, addresses infrastructure needs and boosts local economies. This is the job of government. Government, in their management of the economy, has to take several initiatives, (and) has to take certain steps,” the President was quoted as saying.
In a statement earlier, the DA said the estimated R102 billion needed for Ramaphosa’s proposed R43 billion stimulus package and R59 billion bailout package for state-owned entities begged the question of how this would be financed.
The DA said that this amount pointed to the erosion of credibility of the National Budget and the fiscal framework, a notion recently highlighted by the International Monetary Fund.
The stimulus package would form on the basis of “existing budgetary resources and the pursuit of new investments while remaining committed to fiscal prudence”. Ramaphosa said when he announced the stimulus package.
– BUSINESS REPORT ONLINE