An Income Grant Based on Basic Income Could Be Made Possible Through Budget Restructure

An Income Grant Based on Basic Income Could Be Made Possible Through Budget Restructure.The highly anticipated Basic Income Grant (BIG) could soon become a reality in South Africa, although there are arguments against its feasibility due to affordability concerns. Nonetheless, a potential solution may be on the horizon.SASSA Status Check | SRD R350 Payment Dates for 2023

An Income Grant Based on Basic Income Could Be Made Possible Through Budget Restructure

Social Grants: A Lifeline for Millions

Social grants play a vital role in supporting millions of individuals in South Africa, enabling them to meet their basic necessities. The campaign to establish a permanent Basic Income Grant has been under discussion for an extended period and has been formally submitted to the Minister of Social Development.

The Imperative for a Basic Income Grant

While the Department of Social Development approved the implementation of the Basic Income Grant (BIG) in February, an official announcement is still pending. The urgency behind advocating for the grant’s introduction has intensified in light of the severe impact the COVID-19 pandemic had on the livelihoods of a significant portion of the South African population.

A Plea for Assistance

A substantial number of South Africans find themselves trapped in extreme poverty, with social grants constituting their sole source of income and means of survival. The South African Social Security Agency (SASSA) currently administers various grants, including the Old Age Grant, Child Support Grant, and Disability Grant. Nonetheless, the demand for a more enduring solution to the country’s ongoing economic challenges, such as escalating living costs, has grown louder.

A Potential Transformation: From SRD to BIG

The Social Relief of Distress (SRD) grant, initially introduced as a temporary measure to mitigate the impact of the Covid-19 pandemic in 2020, is being considered as a potential foundation for the Basic Income Grant. However, the implementation process has encountered delays.

In 2022, over 20 million individuals relied on the SRD grant, receiving a monthly stipend of R350 (South African Rand) as approved beneficiaries.

Addressing Poverty: A Focus on the Basic Income Grant

In 2023, the Department of Social Development has made poverty alleviation a central focus, allocating a significant portion of its annual budget to combat the widening inequality gap. Among the strategies employed is the proposed Basic Income Grant (BIG).

Redefining the Budget for the Basic Income Grant

The primary argument against the BIG revolves around its perceived unaffordability and the challenge of sustaining it financially. However, the reality remains that a more substantial financial lifeline from the government could be pivotal in meeting the basic needs of countless unemployed and impoverished South Africans.

Brett Herron, Secretary General of the Good Party, emphasizes the government’s legal and moral obligation to provide this grant, which exceeds the R350 threshold, to those in dire need. Herron contends that allocating approximately R110 billion, less than one percent of the nation’s annual expenditure, to offer a grant of R999 to individuals living below the poverty line is both feasible and imperative.

Advocating for Change: The Petition for a Permanent Basic Income Grant

Black Sash, a prominent South African human rights organization, has presented a memorandum and petition to Minister of the Department of Social Development, Lindiwe Zulu. The petition, signed by over 330,000 individuals nationwide, has been submitted to various authorities, including the National Treasury, Minister of Finance, and President Ramaphosa.

The petition underscores the need for immediate introduction of Basic Income Support for unemployed South Africans aged 18 to 59. Black Sash urges the government to establish permanent social assistance to help those affected by the high cost of living and the pandemic’s catastrophic impact.

Socioeconomic Challenges: Unemployment and Economic Growth

South Africa currently grapples with an unemployment rate of 32.9%, notably higher among the youth, with rates reaching 63.9% for those aged 15-24 and 42.1% for those aged 25-34. Minister Lindiwe Zulu also emphasizes that, beyond aiding vulnerable individuals, the grant’s implementation could stimulate economic growth, addressing the nation’s myriad challenges.

Conclusion

The potential introduction of the Basic Income Grant in South Africa holds promise for alleviating poverty and enhancing the lives of countless individuals. While affordability concerns persist, innovative budget restructuring and a firm commitment from the government could pave the way for a transformative change, offering a lifeline to those most in need. As of now, no details regarding the rollout date or grant amount have been disclosed.