NEWS ANALYSIS: Many grey areas in government’s economic life-support package
Economists estimate the R500bn facility may result in a R170bn budget deficit. It’s not clear how it will be financed
The fiscal package President Cyril Ramaphosa announced on Tuesday will keep the economy on life support as it battles the collapse in growth and business activity due to the Covid-19 pandemic, say economists and analysts
But questions abound on how exactly the R500bn rescue package will be constituted and what it will mean for the already ballooning budget deficit and government funding requirements. Finance minister Tito Mboweni is expected to provide more detail in an adjustment budget, though when it will be tabled is not clear.