How will SA fund its rollout of COVID-19 vaccines?

South Africa has received its first batch of AstraZeneca Covid-19 vaccines from India, marking the beginning of the vaccine rollout plan. The question on everyone's mind is how the country will fund the vaccination program. Joining CNBC Africa, Johann Els, Chief Economist at Old Mutual Investment Group, and Annabel Bishop, Chief Economist at Investec, provided valuable insights into the country's fiscal outlook and the funding for the COVID-19 vaccination drive. Both economists believe that tax hikes won't be needed to finance the vaccines, as there has been a significant revenue overshoot in the current fiscal year. With strong tax receipts and a better economic outlook, the funding for the vaccines seems achievable without imposing new taxes. Both Els and Bishop emphasized the importance of controlling expenditure and tightening fiscal measures to avoid a fiscal cliff. They highlighted the need for continued focus on cutting back on public sector wages and reducing expenditure to stabilize the country's debt profile. While the economists acknowledged the risks around expenditure cuts and wage freezes, they remained optimistic about the country's fiscal situation. Els and Bishop expressed hopes for a lower debt peak and a narrower fiscal deficit in the upcoming budget. They emphasized the importance of sticking to the fiscal consolidation plan and avoiding complacency to address the challenges South Africa faces in its fiscal environment. Overall, the economists painted a cautiously optimistic picture of South Africa's fiscal outlook and the funding for COVID-19 vaccines.