How SA Government will Fund The Extension Of R350 Grant

Many are wondering how South Africa intends to fund the extension of the Covid-19 Social Relief of Distress Grant. The extension of the grant was announced earlier this month during the State of the Nation Address.

How SA Government will Fund The Extension Of R350 Grant

President Cyril Ramaphosa announced that the Covid-19 Social Relief of Distress grant would be extended, during the State of the Nation Address earlier this month.

Civil society groups have argued that in an economy with high unemployment, continued inequality and poverty, a balance between political will and fiscal accommodation needs to be found.

Black Sash Advocacy Manager stated that the group is at the forefront of the call for an introduction of permanent social assistance for unemployed individuals between the ages of 18 and 59 years old.

Black Sash believes that the unemployed are vulnerable as they have not been acknowledged as such by the government, except recently due to the pandemic.

The group aims for the implementation of a basic income grant for unemployed individuals between the ages of 18 and 59 years old.

Some economists have estimated that the one-year extension of the R350 grant could cost around R35 billion.

Economic Justice Manager at the Alternative Information Development Centre stated that the extension is possible through innovative measures.

Raising the cost of living has the harshest impact on the vulnerable members of the economy and it should be in mind when thinking of driving demand-led economic recovery, said the Pietermaritzburg Economic Justice and Dignity Group.

Many are wondering how the country intends to fund the grant and whether it will include any possible tax amendments to fund it.

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