The reinstated R350 Social Relief Distress Grant will cost the state about R30 billion, but there’s a view the president should consider increasing the amount.
Economist Dick Forslund on Monday said the government should consider making it more permanent.
The senior economist at the Alternative Information Development Centre said the government should also drop austerity policies, saying they had a negative impact on society.
President Cyril Ramaphosa on Sunday night announced the return of the R350 grant, saying it was to assist the poorest until the end of March.
He said it had been made possible by a slight improvement in revenue collection.
Forslund said the additional revenue was due to better corporate tax collection by the South African Revenue Service.
“So, I think a lot of new corporate income tax has been collected by SARS so that’s a reason they can put in these billions of R350 over eight months besides the political pressure they are under.”
Forslund said the government could go one better and not only extend the social relief grant, but increase the amount.
“So, at least phase in a permanent grant of let’s say the poverty line of R1,300 per month for 10, 11 million people or something like that. But that could be a cost of over R150 billion.”
Ramaphosa has also revealed the grant will be expanded to allowed unemployed caregivers to apply.
-EWN
In other news – Shona Ferguson fighting for his life in ICU
Actor, filmmaker, and actor Shona Ferguson is fighting for his life after undergoing a heart operation at a private hospital in Joburg.
The 47-year old actor who is also husband to actress Connie Ferguson was admitted more than a week ago to Milpark private hospital where he is currently in intensive care unit (ICU). Learn More
