Leaked document reveals ANC’s plan for 2025 Basic Income Grant

A leaked document confirms a 2025 Basic Income Grant was definitely on the cards for the African National Congress (ANC). But that idea has been left in a flat-spin after the unprecedented budget-speech postponement this week. According to a document obtained by GroundUp, the ANC’s National Executive Council was in support of phasing in the long-talked-about 2025 Basic Income Grant. This was outlined in the leaked document as one of the party’s top priorities for the next five years.

2025 BASIC INCOME GRANT

However, approval for a 2025 Basic Income Grant will surely be in sharp relief following Finance Minister Godongwana’s roundly challenged budget. Postponed to Wednesday 12 March, economists say Godongwana ‘rolled the dice and lost’ and, quite simply, ‘should have known better than to try increase VAT’. Furthermore, they’re asking how it was possible that cabinet ministers and the President waited so late before addressing the problem? Experts say this points towards a worrying failure of governance.

Nevertheless, what could this postponement mean for the South African Social Security Agency’s 2025 Basic Income Grant? Well, in the document in GroundUp’s possession, the ANC stated it will, “strengthen income support through existing social grants and use Social Relief of Distress (SRD) grants as a mechanism towards phasing in the 2025 Basic Income Grant.” Furthermore, there was mention of skills development initiatives with Sector Education and Training Authorities (SETAs) for SRD grant recipients.

IS BIG DEAD IN THE WATER?

However, ANC Secretary-General Fikile Mbalula has made no mention of a 2025 Basic Income Grant since the lekgotla. Even though he did mention the need for the ANC to address marginalised residents and focus on economic transformation and job creation. Previously, in its 2024 election manifesto, the ANC said it would strengthen comprehensive social security by implementing a 2025 Basic Income Grant. In practical terms, this would take the shape of an extended and improved SRD grant for the unemployed.

Quite fittingly, perhaps, the Pretoria High Court ruled in January that the SASSA SRD grant in current guise was ‘unlawful’. Specifically, in the way applicants were actively being excluded and that R370 was well below the R540 poverty line. However, in response, economists predicted any amendments to SASSA SRD could cost the National Treasury as much as R36 billion annually. If it wasn’t already, this is surely a tough sell to a cabinet reeling after the postponed budget announcement.

CRITICISM ALL ROUND

Embattled Finance Minster Gondongwana is being criticised from all sides in his attempts to balance a tricky 2025 budget. Civil rights groups say the ANC is failing to follow through on its commitment. They argue the party’s vague 2025 Basic Income Grant plans are lacking implementation and timelines. Meanwhile, deepening inequality is pushing millions further into poverty, with seemingly no light at the end of tunnel.

Of course, the biggest challenge facing the 2025 Basic Income Grant lies in finding the money. Previously the ANC had said: “We’re exploring new progressive tax measures, including a social security tax and/or VAT increase, while still effectively utilising our existing resources.” This suggests the GNU’s resistance this week may have just put pay to the ANC’s lofty Basic Income Grant plans …