Answer to Question #216421 in Macroeconomics for sese

Question

a. Identify and explain the Covid19 Fiscal Policy intervention made until the end of May 2021 intended to support the overall SA economy. Be specific in your explanation of those you identify, their purpose, the intended beneficiary and use appropriate examples

Answer 1

Fiscal policy refers to measures taken by the government to adjust its spending and tax rates to influence the economy. Covid 19 pandemic has disrupted the South Africa economy. The government has therefore had to increase its expenditure to revive the economy. 

The government introduced an official loan guarantee scheme to provide bank loans to eligible businesses to assist them during the pandemic with operational costs. The scheme has been extended until July 2021. The intended beneficiaries were small and medium-sized enterprises like the poultry and vegetable sector.