BL Premium reports that Finance Minister Enoch Godongwana has kicked the basic income grant can down the road, saying in his medium term budget policy statement that a decision has not yet been made and would have to be weighed up against other spending priorities.
Any new long-term spending commitments — such as income support for the poor — would be possible only if other government programmes were closed or taxes were increased, according to the policy statement. In comments to journalists, Godongwana stressed that such a decision would be taken by the cabinet and not by the Treasury. Tax changes are tabled only in the February budget and Treasury is generally silent on tax in the adjustment budget. The R350 social relief of distress grant, which was introduced last year to shield the poor from the effects of the Covid pandemic and lockdown, continues until the end of March next year. Political pressure to extend the grant and ultimately replace it with permanent income support has been intense and the ANC national executive committee took a decision earlier this year that it would be introduced “subject to affordability”. A R350 grant would cost the country R40bn to R70bn a year, so tax increases to pay for a grant would need to be substantial.
- Read the full original of the report in the above regard by Carol Paton at BusinessLive (subscriber access only)
- Read too, ‘Give basic income grants for those aged 18 to 59’, says Saftu’s Vavi, on page 18 of Sowetan of 11 November 2021
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