Tue May 21 00:13:35 SAST 2013
Tue May 21 00:13:36 SAST 2013

South Africa can't afford 'welfare state'

Nov 24, 2011 | Sapa, Reuters | 189 comments

South Africa cannot afford to increase its spending on social grants indefinitely because this is not sustainable, says President Jacob Zuma

More than 15 million of an estimated 50 million people in Africa’s biggest economy receive some kind of state welfare.     

“We cannot be a welfare state,” SAPA quoted Zuma as saying at a business meeting in Cape Town.     

“We cannot sustain a situation where social grants are growing all the time and think it can be a permanent feature.”     

With an unemployment rate of 25% of the labour force, millions of South Africans still leave in poverty even 17 years after the end of white minority rule and look to government to improve their plight.     

More than a million jobs have been lost since a recession in 2009 and economic growth of an average 3% over the next few years will not be sufficient to make a meaningful dent on joblessness.      

The government has said the economy needs to grow by an average 7% to create jobs.     

South Africa’s unemployment rate could stoke social unrest and the government has pushed job-creation to the top of its agenda. But it has acknowledged that meeting its target of creating 5 million jobs by 2020 would be tough.     

Zuma said the country might have to reduce social grants.      

“I am certain we will come to that point. No one will want to sustain this,” he said, adding that taxpayers should develop the country “rather than feed the poor”.     

Zuma’s comments are likely to be received well by investors who have been worried that South Africa’s fiscal accounts could deteriorate further as government might be tempted to raise welfare spending.     

The National Treasury has said welfare spending in the 2011/12 financial year would be 15% of total expenditure and is expected to rise by an average 7,2% over the next three years.     

“This cannot be sustained,” Zuma said.     

Comments

Tue May 21 00:13:36 SAST 2013 ::
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Nov 24, 2011

LeparaThePresident

Now where does this come from? I remember a certain Mbeki said this almost 3yrs back, but he was haulled like he was talking nonsense. Only if Pres JZ and his ilk can start thinking outside the box, like he said from this press interview, then, and only then, we can have hope.
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Nov 24, 2011

Mmmooohooo

wa kinisile babaZuma ngale likiniso lakho zibhebha zincane le nganane
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Nov 24, 2011

NDA

Zuma said the country might have to reduce social grants.
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Shower head you and your Government gave these grants to this young Mothers now you want to reduce it,you ain"t seen nothing yet.
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Nov 24, 2011

Ntshwana

I thought Sowetan was quoting Moeletsi Mbeki!

ntshwana@gmail.com
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Nov 24, 2011

LeparaThePresident

This quote should be used by ANC NEC everytime of their meetings.



Dr. Adrian Rogers:

"You cannot legislate the poor into freedom by legislating the wealthy out of freedom. What one person receives without working for, another person must work for without receiving. The government cannot give to anybody anything that the government does not first take from somebody else. When half of the people get the idea that they do not have to work because the other half is taking care of them, and when the other half gets the idea that it is no good to work because somebody else is going to get what they work for, that my dear friend, as about the end of any nation. You cannot multiply w!ealth by dividing it."


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Nov 24, 2011

LeparaThePresident

@Ntshwana
I thought Sowetan was quoting Moeletsi Mbeki!

ntshwana@gmail.com
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True its an extract from one of Moeletsi 's speeches.
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Nov 24, 2011

nevus

Zuma said the country might have to reduce social grants
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e seng mo modendeng o ka dietsa kaofela mara ge o tla mo modendeng o tsosa engwe yanong,if modende o ya ko tlase le bojalwa a bo ye ko tlase,heh bathong wa re re tlo nwang?
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Nov 24, 2011

Punkies

@Sowetan, did you actually have to choose that ugly tummy with cellulites..
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Nov 24, 2011

Zwa-Malopo

@Sowetan -whay are disrepecting our mothers ?was there any need to show that picture ?
why didn't you show the shower head himself ?..............nxa Madhekere a ~!!!!!!
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Nov 24, 2011

Ntshwana

@nevus

LMFAO
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