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<\/a><\/p>\n“The special adjustment budget seeks to modify the 2020\/21 budget to utilise current baseline allocations to provide for the rapidly changing economic conditions and enable spending on the Covid-19 response,” Treasury said.<\/p>\n
“A revised fiscal framework will also be presented, to account for substantial revenue losses emanating from the economic shock of the pandemic and subsequent lockdown.”<\/p>\n
All other adjustments not included in this special adjustment budget will be tabled in the October Adjustment Budget, it said.<\/p>\n
Treasury recently stated that as many as 7 million South Africans could become unemployed if large chunks of the economy remained closed for the remainder of the year.<\/p>\n
It said that around 3 million jobs are at risk even if the pandemic is contained quickly, while a slow recovery could see 5 million job losses. A worst-case scenario would push the unemployment rate to over 50%, from its current rate of just under 30%.<\/p>\n
Dondo Mogajane, the National Treasury\u2019s director-general, warned last week that the country\u2019s unemployment rate could reach as high as 40%.<\/p>\n
Speaking to 702, he said that the economy could contract between 7% and 12% as a result of the impact of the coronavirus.<\/p>\n
He said that unemployment could reach between 30% and 40% \u2013 \u201cif things go the way they are\u201d. He said that the tourism industry is on its knees, with travel agencies closing down.<\/p>\n
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