The Basic Income Grant could become a reality
Among the various issues discussed at this year’s SONA, the possibility of a new Basic Income Grant stood out as a fan-favourite
President Cyril Ramaphosa all but confirmed the South African Basic Income Grant at last night’s State of the Nation (SONA) address. His two-hour address came across more like a self-congratulatory ANC rally ahead of the 2024 national elections.
TRENDING: Necessary SASSA info for old-age grant recipients February 2024
However, in between all the back-patting and opinion-splitting ‘Tintswalo’ stories, the South African Basic Income Grant was mentioned. Business Tech confirms it will manifest as an extension and amendment of the existing Social Relief of Distress [SRD] Grant.
ALSO READ: Peter de Villiers accused of sexual misconduct
SOUTH AFRICAN BASIC INCOME GRANT
As part of his celebration of ANC ‘pro-poor policies’ at the 2024 SONA address, President Ramaphosa reminded eveyone the R350 SRD grant introduced during the COVID-19 pandemic supports 9-million unemployed people.
ALSO READ: RECAP on SASSA Old-Age Pension increases for 2024
“We have seen the benefits of this grant and will extend and improve it as the next step towards a Basic Income Grant for the unemployed,” said Ramaphosa. 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
While Ramaphosa all but confirmed the South African Basic Income Grant would come to fruition, he delivered no concrete plans on how this would happen. Many expect further detail to follow at next week’s budget speech (21 February). As it stands, R253 billion is allocated annually to SASSA grants. And R36 billion is funding the extension of the SRD grant which runs until 31 March 2024.
ALSO READ: South African WHATSAPP licence renewal is a game-changer
As we’ve reported before, the Minister of Social Development, Lindiwe Zulu, has tabled the following funding models for a South African Basic Income Grant:
- Increased VAT and wealth taxes.
- Reallocation of government budget.
- Heightened borrowing.
NEXT READ: APPROVED: 2024 SASSA payout dates for the rest of the YEAR
What do you think of the prospect of a South African Basic Income Grant? Be sure to share your thoughts with our audience in the comments section below. And don’t forget to follow us @TheSANews on X and The South African on Facebook for the latest updates.