We will be able to pay for vaccines, promises Treasury director-general
National Treasury's director-general Dondo Mogajane has assured South Africans that money will be found to pay for vaccines.
“It is not a problem. We will find the money. If any of these manufacturers come tomorrow and say 'hey, we need money' we will be able to pay,” he said on Wednesday.
He was addressing a virtual engagement between the National Treasury and the SA National Editors Forum (Sanef). Mogajane said the cost of vaccinating 40 million South Africans will be between R20bn and R24bn.
He said while the options to fund the vaccine include higher taxes, no-one has said the government is going to increase taxes.
“We are not saying we are going to increase VAT. We are not saying we are going to increase Pay-As-You-Earn, we are not saying we are going to increase corporate income tax or any of the taxes. All we are saying is that it remains an option available if it has to be called,” he said.
The Treasury's other options include reprioritisating budgets from other programmes and borrowing.
Mogajane noted that SA's debt to GDP ratio has hit “certain levels”, adding that in this regard there was a need to claw back. This was also because of the letter of intent to the International Monetary Fund where SA made certain commitments that it is obliged to honour.
Mogajane also sought to deal with a perception that the Treasury was “sleeping on the job” and had dragged its feet in procuring vaccines.