The much-awaited basic income grant is likely to take a back seat when finance minister Enoch Godongwana delivers his budget next month.
Last year, Godongwana said for the country to afford the proposed grant, it would have to go on massive cost-cutting measures.
The national fiscus spends about R400-billion to fund social grants annually.
Mmamoloko Kubayi, the ANC head of economic transformation has already hinted that the proposal might not see the light of day, citing fiscal constraints. She was non-committal whether there would be any movement by the government on the matter.
“We support the basic income grant, but it must be affordable to the state.
“Many of us have moved away from the non-supporting stance, and I’m one of those who initially did not support it, but Covid-19 experiences, with the interventions such as the R350 Social Relief of Distress Grant, taught us there was a need for a basic income grant.
“Modalities need to be worked out,” she told Sunday World.
Social justice organisations have, among others, pushed hard for the implementation of the grant to cushion the poor amid the high unemployment rate in the country, especially among the youth and the high cost of food.
Organisations, mainly non-governmental groups and non-profit organisations, have put on the table the introduction of a social security tax, corporate and wealth taxes including value added tax as some of the mechanisms to fund their basic income grant proposal.
Numerous studies have also suggested that it will cost the country about R255-billion annually to roll out the proposed basic income grant at a level of the Food Poverty Line of R624 a month to an estimated 34.5% of the country’s unemployed population.
According to the Institute for Economic Justice, the basic income grant should be introduced as a matter of urgency, saying labour market and household incomes have been severely depressed.
“The introduction of a Universal Basic Income Guarantee is one of the best tools available to reduce poverty, hunger and destitution,” it said.
“The South African government has a constitutional obligation to progressively realise the universal right to social assistance within available resources.
“It is necessary to introduce social security for adults (18-59 years) who are currently not covered,” said the institute , the lobby group advocating for pro-poor policies.
A 2020 document by the ANC on the basic income grant, food security and Covid-19 social relief warned government that the current unemployment levels and poverty were a ticking bomb.
“Post Covid-19 estimates of poverty are much higher, especially for those who are over the age of 18 and are under 60 years and who are without any social income.
“They are destitute and dangerously disengaged.
“The country has extremely high levels of income inequalities, however income distribution in our country is hugely distorted. For example, 60% of income goes to the 10% with the poorest 50% getting less than 10% of the country’s income,” the document said.
The ANC subsequently proposed a R500 monthly grant, which would be administered in a similar fashion as other social grants, but the only difference would be there will be no means test, to determine whether a person qualifies for the grant.
Other proposals on the table are that the existing R350 Social Relief of Distress Grant should be converted to a permanent basic income grant.
For more political news and views, click here.
Follow @SundayWorldZA on Twitter and @sundayworldza on Instagram, or like our Facebook Page, Sunday World, by clicking here for the latest breaking news in South Africa. To Subscribe to Sunday World, click here.
