Cape Town - Finance Minister Enoch Godongwana has indicated that the government would not drop the R350 social relief of distress grant without providing a replacement for it.
“We are under no illusion that you can drop the SRD without a fundamental replacement – hence we are discussing a comprehensive social security system.
“The elements of that are social assistance, social insurance and active labour market policies,” Godongwana said.
The minister said that, for the comprehensive social security system to happen, there would be a need to be careful consideration of the various trade-offs.
“As things stand, there is a bucket of interventions we are making for the poor,” he said, adding that when consolidated it amounted to R200 billion.
“Those are to be trade-offs we are going to talk about,” Godongwana said.
He made the statement during a debate in the National Assembly on Wednesday evening when this year’s fiscal framework and revenue proposals, as well as the report of the standing committee on finance, were considered.
Responding to oral questions about when they would implement the ANC resolution on a basic income grant after the disappointment of not increasing the SRD grant, Social Development Minister Lindiwe Zulu said her department was working with Godongwana and the National Treasury to ensure the grant was increased.
Zulu said they were conscious of the fiscal challenge facing South Africa.
“We are also saying, while the fiscal challenge is there, we must not lose sight of the people who are poor and have absolutely nothing,” she said.
Zulu added that it would be better for the country to have the basic income grant, so that people had something to rely on.
“The struggle continues to convince my colleagues, the Department of Finance, to look positively towards the R350, its extension, its increase, and the introduction of the BIG.”
Godongwana said this year’s Budget had been tabled under difficult conditions that were not of their choosing.
“It is true that our economy has not performed well since the global financial crisis – no doubt about that – but It is mischievous and misleading to attribute it to cadre deployment.
“There is no doubt that there is a correlation between the electricity crisis and growth,” he said.
Godongwana noted that power outages started in 2008, and since then the country’s economy had not performed well.
When he delivered his Budget speech last month, Godongwana said there would be no pressure to increase taxes in order to raise funds to accommodate the R350 grant ahead of next year’s general elections.
“Now, if you are saying that we will have pressure to raise taxes next year for election, I don’t think so,” Godongwana said when responding to the media.
Cape Times