ANC commits to basic income grant within two years of its new government
Party says several funding options will be explored, including ‘new progressive tax measures’
23 May 2024 - 14:38
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ANC president Cyril Ramaphosa and KwaZulu-Natal chair Siboniso Duma campaign in Shongweni on April 21. Picture: SANDILE NDLOVU
The ANC has committed to implementing the much talked about basic income grant (BIG) within two years.
The party said on Wednesday that its new government, should it be re-elected in the May 29 polls, will ensure the BIG is in effect within two years.
The BIG is a permanent universal grant proposed to replace the R370 social relief of distress grant (SRD) introduced at the height of the Covid-19 pandemic as a form of financial assistance to unemployed South Africans.
There has been much debate about how much the BIG will be, with many suggesting it should be between R1,000 and R1,500.
The BIG will be funded by taxpayers, as will be the case with National Health Insurance, which was signed into law last week.
The ANC said it was “committed to finalising a comprehensive policy on the basic income support grant within two years of a new ANC administration, ensuring broad consultation and expedited action.
“We understand the urgency of providing certainty and coherence in this matter, addressing the challenges faced by the SRD grant and fulfilling our commitment to the wellbeing and prosperity of all South Africans.”
It said the BIG will supplement, not replace, social welfare already in place, including old age, child support and disability grants. BIG would be funded through “progressive mechanisms” and several options would be explored including “new progressive tax measures, including a social security tax, while maximising fiscal space by effectively using existing resources”.
It was open to considering more diverse funding sources and the BIG would not be limited to job seekers.
“We acknowledge the temporary SRD grant should serve as the foundation for the transition to a permanent basic income support grant. To address the exclusion of a large number of people, we will improve the value of the grant and extend it to reach more beneficiaries,” it said.
“We support a BIG that benefits all individuals without work-seeking conditions. This grant will alleviate poverty and hunger for vulnerable people, including caregivers, the unemployed and those in precarious employment.”
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
ANC commits to basic income grant within two years of its new government
Party says several funding options will be explored, including ‘new progressive tax measures’
The ANC has committed to implementing the much talked about basic income grant (BIG) within two years.
The party said on Wednesday that its new government, should it be re-elected in the May 29 polls, will ensure the BIG is in effect within two years.
The BIG is a permanent universal grant proposed to replace the R370 social relief of distress grant (SRD) introduced at the height of the Covid-19 pandemic as a form of financial assistance to unemployed South Africans.
There has been much debate about how much the BIG will be, with many suggesting it should be between R1,000 and R1,500.
The BIG will be funded by taxpayers, as will be the case with National Health Insurance, which was signed into law last week.
The ANC said it was “committed to finalising a comprehensive policy on the basic income support grant within two years of a new ANC administration, ensuring broad consultation and expedited action.
“We understand the urgency of providing certainty and coherence in this matter, addressing the challenges faced by the SRD grant and fulfilling our commitment to the wellbeing and prosperity of all South Africans.”
It said the BIG will supplement, not replace, social welfare already in place, including old age, child support and disability grants. BIG would be funded through “progressive mechanisms” and several options would be explored including “new progressive tax measures, including a social security tax, while maximising fiscal space by effectively using existing resources”.
It was open to considering more diverse funding sources and the BIG would not be limited to job seekers.
“We acknowledge the temporary SRD grant should serve as the foundation for the transition to a permanent basic income support grant. To address the exclusion of a large number of people, we will improve the value of the grant and extend it to reach more beneficiaries,” it said.
“We support a BIG that benefits all individuals without work-seeking conditions. This grant will alleviate poverty and hunger for vulnerable people, including caregivers, the unemployed and those in precarious employment.”
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