This archive report was first published on 6 August 2020.
Published on August 6, 2020, the International Center for Policy and Conflict (ICPC) urged the overhaul of the FY2020/2021 budget to reflect the harsh economic reality of the COVID-19 pandemic.
The ICPC criticized the National Treasury for preparing a budget that was 'completely unhinged and lives in a parallel universe not the reality of devastating COVID-19 extraordinary uncharted times.'
With the economy fully opened up, the ICPC argued that the country should have adopted a county situational analysis strategy with a timed review mechanism rather than a one-size-fits-all approach.
The organization emphasized the need for an urgent adjusted COVID-19-centered and effective budget to reprioritize expenditure, fully address the worsening health crisis, and support livelihoods.
The ICPC proposed a budget approach that is temporary and targeted, as well as structural and sustained, to address the economic crisis brought on by the coronavirus pandemic.
The organization outlined seven key areas that the government should focus on, including:
- County-based healthcare with large additional resources to respond to the escalating pandemic.
- Revenue sharing revised to ensure adequate funding of County governments' infrastructure.
- Urgent measures for supporting businesses, including accelerated depreciation measures and cash flow assistance.
- Setting up the Temporary Employer/Employee Relief Scheme (TERS) to offer funds to businesses or direct to employees.
- Establishing a very low-interest government-guaranteed business rescue fund for businesses where loans are not appropriate.
- Targeted support for the most severely affected sectors and household stimulus payments.
- Additional funding to the education sector to address the painful consequences of the government's failure to provide schools with adequate infrastructure and basic services.
