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Cabinet officials

South Africa's Parliament Nears Approval of Supplementary Adjustment Budget Due to COVID-19 Pandemic

Strategic Insights

— 2 min read

South Africa's Minister of Finance, Tito Mboweni, tabled a supplementary 2020 Adjustment Budget on June 24 due to the COVID-19 pandemic and increased economic downturn. This budget requires approval from Parliament, which has already agreed to the Revised Fiscal Framework. The 2020 Revised Fiscal Framework sets out overall estimates of revenue collection, expenditure, borrowing, interest, and debt servicing for the financial year. It also provides motivation for the 2020 Division of Revenue Amendment Bill and the 2020 Adjustments Appropriation Bill.

Key Takeaways:

  • The supplementary 2020 Adjustment Budget was tabled on June 24 by Minister of Finance Tito Mboweni due to the COVID-19 pandemic and economic downturn.
  • Parliament has agreed to the Revised Fiscal Framework, which sets out overall estimates of revenue collection, expenditure, borrowing, interest, and debt servicing for the financial year.
  • The 2020 Revised Fiscal Framework motivates the 2020 Division of Revenue Amendment Bill, which allocates funds to the national, provincial, and local spheres of government, and the 2020 Adjustments Appropriation Bill, which makes specific allocations to specific departments and entities.
  • The National Assembly (NA) passed the 2020 Division of Revenue Amendment Bill on July 15, and the National Council of Provinces (NCOP) is scheduled to consider it on Wednesday.
  • The NA is scheduled to hold mini-plenary sittings from July 21 to 24 to scrutinize specific budget allocations, and debates will be held in the NCOP during this time.
  • The supplementary Adjustment Budget will be sent to the President for assent if both the NA and NCOP pass it.
  • A second adjustments budget will be tabled in October with the Medium Term Budget Policy Statement.

Statistics:

  • June 24: Minister of Finance Tito Mboweni tabled the supplementary 2020 Adjustment Budget.
  • July 8: Parliament agreed to the Revised Fiscal Framework.
  • July 15: The National Assembly passed the 2020 Division of Revenue Amendment Bill.
  • July 21-24: The National Assembly will hold mini-plenary sittings to scrutinize specific budget allocations.
  • July 29: The National Assembly is provisionally scheduled to consider the 2020 Adjustments Appropriation Bill.
  • July 31: The National Council of Provinces will provisionally consider the 2020 Adjustments Appropriation Bill.
  • August 4: The National Council of Provinces is provisionally scheduled to consider the 2020 Adjustments Appropriation Bill.

Sources:

  • "Coronavirus – South Africa: Parliament and the 2020 Supplementary Adjustment Budget" by M2 PressWIRE (July 21, 2020)
  • The Public Finance Management Act and the Money Bills Amendment Procedure and Related Matters Act
  • The Constitution of South Africa
  • The Money Bills Amendment Procedure and Related Matters Act (Act 9 of 2009)

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