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Cabinet officials

Parliament Approves Revised Fiscal Framework, Moves Closer to Passing 2020 Adjustment Budget

Strategic Insights

— 1 min read

The South African Parliament has made significant progress in approving the Revised Fiscal Framework, following the tabling of the supplementary 2020 Adjustment Budget by Minister of Finance Mr Tito Mboweni on 24 June. The revised framework outlines the country's overall estimates of revenue collection, expenditure, borrowing, interest, and debt servicing for the 2020 financial year. This approval comes after public hearings have become a staple in Parliament's consideration of the budget, a tradition that has been in place since the advent of democracy. The Parliament must now approve the supplementary 2020 Adjustment Budget, which was necessitated by the COVID-19 pandemic and subsequent economic downturn.

Key Takeaways:

  • The Public Finance Management Act and the Money Bills Amendment Procedure and Related Matters Act empower the Minister of Finance to table an adjustments budget, when necessary.
  • A special Adjustment Budget was tabled due to the COVID-19 pandemic and increased economic downturn in the country.
  • The revised Fiscal Framework was approved by Parliament, outlining overall estimates of revenue collection, expenditure, borrowing, interest, and debt servicing for the 2020 financial year.
  • Parliament has scheduled mini-plenary sittings from 16 July to 24 July for scrutiny of specific budget allocations.
  • The 2020 Adjustments Appropriation Bill will be considered by the National Assembly on 29 July and by the National Council of Provinces on 31 July and 4 August.
  • The supplementary Adjustment Budget will be sent to the President for assent if both the National Assembly and the National Council of Provinces pass it.

Statistics:

  • The 2020 Revised Fiscal Framework outlines overall estimates of revenue collection, expenditure, borrowing, interest, and debt servicing for the 2020 financial year.
  • The Parliament has scheduled 9 mini-plenary sittings from 16 July to 24 July, with 2 additional sittings scheduled for the plenary sitting of the National Assembly on 29 July and the National Council of Provinces on 31 July and 4 August.
  • The supplementary Adjustment Budget has been tabled by Minister of Finance Mr Tito Mboweni on 24 June.

Sources:

  • Public Finance Management Act
  • Money Bills Amendment Procedure and Related Matters Act (Act 9 of 2009)
  • Republic of South Africa: The Parliament.

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