The revised national development plan paints a worrisome picture of an economy buckling under the immense pressure of a heavily dependent aged population, an ageing workforce earning too little to save for retirement and the millions of orphaned children.

"Ultimately the state must generate sufficient income from the active groups in the population to be able to redistribute to those who are less active or inactive while still meeting other policy priorities," the document says.

"It will be undesirable if the guarantees or transfer benefits are too many or generous and hence contribute to an unsustainable fiscal position. It is equally undesirable and difficult to reduce the benefits and guarantees once they have been introduced."

The government has budgeted R105-billion for social grants for the current financial year.

This figure is projected to grow to R122-billion in the 2014/2015 financial year.

Almost 16 million South Africans receive grants.

The plan issued a stark warning arising from uncontrollable youth unemployment.

According to the plan, seven million (57%) of the estimated 13million people employed today will leave the labour market in the next 18 years and that half of them (3.5million) will be over the age of 63 years.

Owing to this startling revelation, more young people need to be roped in to the labour market "for longer".

"Failure to create jobs will mean public expenditure will need to rise dramatically because ... there will be a growing number of elderly people who would not have worked when they were of working age," says the plan.

They seems to be in favour of the R5-billion youth wage subsidy, which has been stalled by labour federation Cosatu at Nedlac, while delegates at the recent ANC national policy conference rejected it in favour of a Job Seekers' Grant.

The commission's report stated: "For many, especially the youth, gaining entry into the labour market is not a smooth process. Hence efforts should be made to facilitate labour market entry through active labour market policies."

- molatlhwao@sowetan.co.za

Comments

• Sign in or sign up to comment

Tue May 21 20:20:52 SAST 2013 ::

Aug 17, 2012

imd

taxpayers simply have no choice but to dig deeper into their pockets
================================================
WTF ??????
Report Abuse

Aug 17, 2012

RobinH

Nothing to worry about people. Our miracle-enabled leadership are busily applying their minds to this issue. I reckon they might even come up with the framework for discussions toward a roadmap toward guidelines some time in the next 20 years or so. Never lose sight of the fact that our benevolent serial father and husband knows exactly what he and his party are doing. I mean, he said so, so it must be true.
Report Abuse

Aug 17, 2012

Iphone5

lOL this 1 is totally wrong , they failing E-toll now this is how we r robbed ?

Report Abuse

Aug 17, 2012

Iphone5

Lol eh picture 3 hai hai hai its a NO NO NO NO for me , i mean dude why would Apple have offices ko ur hood while u wont buy it , there has to be classes in life , so companies u have ka da r companies that r benefiting ka da , i work for Malaysia they hate SOWETO but love it here in Sandton mxm mxm mxm take that hat off maybe u will get a job
Report Abuse

Aug 17, 2012

Ndele01

The reality is that the people think the government MUST give them a job - nowhere in the world is this expectation as big as in South Africa.(mostly because the government promises it during elections - so why create your own work ?)

The people need to understand that they need to get involved in creating their own jobs like in China, America (there is no job protection there), Europe, etc.They must stop waiting for someone else to help them and help themselves - they can !

As heartbreaking as it may sound, people do not have a right to a job or house - we must try and help the poor as far as we can but they must not wait for it - it remains a priviledge and they can not strike for it.

If you can't afford to give your child a good education, then you shouldn't have so many children - otherwise they become beggars and suffer through their whole life. It's not nice to hear - but we must become realistic and responsible.
Report Abuse

Aug 17, 2012

Papage

and people must stop making so many babies, it is unfair to have so many children you can't feed, people we won't all be President, so please rejuce the level of sex or sterelise all those who have 2 kids
Report Abuse

Aug 17, 2012

jnrb

@Ndele01

You said it, man.
Report Abuse

Aug 17, 2012

Papage

Reduce making more babies
Report Abuse

Aug 17, 2012

Nicholaster

Picture 3, That apperance of that man, is another example why young males they are not employed.
Report Abuse

Aug 17, 2012

MommaC

Ndele01

*round of applause*
Preach on.
Report Abuse

Read all 26 comments