Cyril Ramaphosa - 2024 election date
President Ramaphosa. Picture: African News Agency

Home » The Basic Income Grant could become a reality

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

Cyril Ramaphosa - 2024 election date
President Ramaphosa. Picture: African News Agency

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.

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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.

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SOUTH AFRICAN BASIC INCOME GRANT

Millions of South Africans count the days for the next SASSA grant payout. Image: File

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.  

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“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

More detail on the expanded SRD grant is expected at the 21 February 2024 budget speech. Image: File

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.

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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.

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