Reworked National Budget Coming In June
Revised Budget Coming On 24 June
The National Budget announced in February 2020 was said to be a tough one with revised targets, reduced government spending and a final attempt at keeping the Rand and SA Bonds worth investing in at the highest levels (OK, the lowest of the highest levels to be totally honest).
International ratings agencies (Like Fitch and Moodys) were not impressed and downgrades soon followed. To be fair internationally these rating agencies could see the effects of Covid-19 coming and adjustments were made all over. The budget did make attempts at doing all that was intended but did not take into account the Covid-19 Pandemic that was already sweeping across the globe and throwing nation after nation into lockdown.
‘Once SA was hit and the lockdown began that budget became essentially worthless’
Once SA was hit and the lockdown began that budget became essentially worthless and not related to any sort of reality. It soon became clear as the Presidency announced new UIF relief measures and all sorts of changes that the budget would have to seriously be revised.
This is what has been happening and it has been announced that the Finance Minister plans to reveal the revised budget on 24 June 2020.
Before That Happens
Before the current budget can be officially amended or revised it has to be officially accepted by Parliament. Once that is done (presumably this year it will happen with a minimum of opposition) the revised budget can be announced.
Revise Your Own Budget
You have no doubt been hit by the lockdown. Even if you have been one of the rare few who have been working throughout the current situation has no doubt changed how you are doing ‘normal’ things and how you are therefore spending money. For many, their income has been slashed to UIF payouts or support from family and friends.
It is important to review your finances, especially now. Work out (1) what money you have (2) what assets (things) you can sell if necessary (3) your regular expenses (monthly ones) (4) what things you can cut out or reduce (5) who you owe money to and (6) if you can reduce those payments each month – eg by calling your creditors and talking to them.
If you can see that you are not going to have enough money for everything then you need to prioritize. Do this on paper. Food and shelter are natural first priorities. At present, however, due to the lockdown landlords cannot evict tenants. So, keep this in mind. You may be able to ignore those costs knowing you will have to possibly move out in the future as a result. Still, it could free up a lot of funds.
When it comes to debts, why not call your local Debt Counsellor and ask for their professional advice. They will help you find out more about credit insurance you may already have or arrangements the banks are offering. You can also discuss how debt review can be a long term solution to all your debt (during and after the Covid-19 pandemic).
‘Revise your personal budget now so that you have a clear picture of the way forward’
Don’t be passive about your income and expenses during lockdown. Rather than vaguely worry about how you will make ends meet, take action and get organised. Revise your personal budget now so that you have a clear picture of the way forward.