The government must follow a tight balancing act as it weighs several options that will eventually replace the R350 social relief of distress grant introduced during the Covid-19 pandemic.
President Cyril Ramaphosa told the National Council of Provinces sitting on Thursday that while supporting the poor was a priority, the government could not be “reckless” in solving the problem.
“The grant will be maintained until March 2024, while the economy continues to recover from the impact of the pandemic. Various options are being explored, taking into account affordability, financing options and efficacy in addressing poverty.
“We are looking at how we move beyond the SRD grant. There have been calls for the basic income grant [BIG] to be introduced which will support a number of people, and that is being considered,” said Ramaphosa.
The president was asked whether the government is considering making the (R350) social relief of distress grant permanent or whether it had an alternative long-term plan that will address poverty.
He said the government also took into consideration the views from financial institutions such as the International Monetary Fund.
“Our people are living in poverty, are unemployed and that is a primary consideration, but at the same time so as to not be reckless, we have to look at everything that we do within affordable means.
“So it is a balance that we will have to have. Caring for our people, which this government has demonstrated and that is why so much of our budget goes to social wage.”
Government continues to weigh options to replace R350 grant, Ramaphosa tells NCOP
Image: GCIS.
The government must follow a tight balancing act as it weighs several options that will eventually replace the R350 social relief of distress grant introduced during the Covid-19 pandemic.
President Cyril Ramaphosa told the National Council of Provinces sitting on Thursday that while supporting the poor was a priority, the government could not be “reckless” in solving the problem.
“The grant will be maintained until March 2024, while the economy continues to recover from the impact of the pandemic. Various options are being explored, taking into account affordability, financing options and efficacy in addressing poverty.
“We are looking at how we move beyond the SRD grant. There have been calls for the basic income grant [BIG] to be introduced which will support a number of people, and that is being considered,” said Ramaphosa.
The president was asked whether the government is considering making the (R350) social relief of distress grant permanent or whether it had an alternative long-term plan that will address poverty.
He said the government also took into consideration the views from financial institutions such as the International Monetary Fund.
“Our people are living in poverty, are unemployed and that is a primary consideration, but at the same time so as to not be reckless, we have to look at everything that we do within affordable means.
“So it is a balance that we will have to have. Caring for our people, which this government has demonstrated and that is why so much of our budget goes to social wage.”
716,000 graduates apply for R350 grant
The deficit is a big consideration for government when deciding whether to borrow more money.
He also said it was important to develop a mechanism to ensure that beneficiaries end up in permanent employment.
“There is concerted effort within government to link current beneficiaries to various economic opportunities such as skills development, sustainable livelihood programmes and job creation initiatives.”
He said some of the economic opportunities include the expanded public works programme (EWP) and the presidential employment stimulus, as well as partnerships with the private sector to increase opportunities for the unemployed to access other sources of income.
SA already provides extensive social security support through grants that reach more than 46% of the population, he said.
He added: “We are through the SRD process, looking at a future which will enable us to be able to track beneficiaries and where they end up. The (SRD) fund was introduced during Covid as an immediate assistance measure.
“As we move forward, we should be able to place tracking systems to see how those people who are being assisted are able to get skills, become entrepreneurs and get permanent jobs.”
He said because this is a new grant, the system was not in place.
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