Why a basic income grant would bust the budget
A universal basic income grant costing R200bn is a nonstarter; a pragmatic approach that combines public works schemes with targeted income support and faster structural reform is more likely
Economists are pushing back against the assertion by the department of social development (DSD) that SA can afford a basic income grant (BIG) to the value of R200bn, saying it is based on wishful thinking and flimsy technical analysis.
The National Treasury is gearing up to do its own, more rigorous, modelling, and is also weighing the utility of direct grants against the benefits of public job-creation schemes and the need to accelerate structural reform to get growth going...
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