President Cyril Ramaphosa almost approved South Africa's basic income grant in his State of the Nation Address (SONA) last night. His two-hour speech sounded like a self-congratulatory ANC rally ahead of the 2024 national elections.
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But in between all the backbiting and divisive “tintswalo” talk, there was mention of South Africa's basic income subsidy. Business Tech confirmed that this will appear as an extension and amendment to the existing social distress relief scheme [SRD] Grant.
South Africa basic income subsidy
As part of celebrating the ANC's “pro-poor policy” in his 2024 SONA speech, President Ramaphosa announced that the R350 SRD grant introduced during the COVID-19 pandemic has supported 9 million unemployed people. reminded the people that there is.
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“We recognize the benefits of this grant and will expand and improve it as the next step towards a basic income grant for the unemployed,” Mr Ramaphosa said. Social grants disbursed by the South African Social Security Agency currently account for 60% of the income of the 28 million beneficiaries who receive them.
welfare state
President Ramaphosa has all but confirmed that South Africa's basic income subsidy will become a reality, but he has not provided any concrete plans for how it will happen. Many expect further details to follow in next week's budget speech (February 21). As it stands, R253 billion is allocated to his SASSA grants each year.And R36 billion is funding the extension of the SRD grant, for a period of March 31, 2024.
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As we previously reported, Social Development Minister Lindiwe Zulu has presented the following funding model for South Africa's basic income subsidy.
- Increase in VAT and wealth tax.
- Reallocation of government budget.
- Increase in debt.
Read next: Approved: 2024 SASSA payment dates for the remainder of the year.
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