Basic income grant ‘will reduce poverty and hunger, but won’t lead to growth’
In the medium term the only reliable revenue source for the grant would be personal income tax or VAT, or a combination of both, Wits academic Michael Sachs says
A basic income grant in SA would lead to a substantial reduction in poverty and hunger, but it is unlikely to directly result in an increase in economic growth and productivity, according to Wits University professor Michael Sachs.
He was a member of a panel of experts drawn together by the department of social development to discuss the issue as a possible replacement for the monthly R350 social relief of distress (SRD) grant. Introduced in May after the outbreak of the coronavirus pandemic, the SRD helps about 9-million people but is scheduled to end in March 2022...