A PANEL of economic advisers appointed by South African President Cyril Ramaphosa warned against implementing a basic income grant in the world’s most unequal nation, saying the multibillion dollar cost could deepen debt and hinder economic growth.
As recently as September, Ramaphosa has said that a basic income grant — which would be the biggest of its kind globally if implemented — should be considered to alleviate poverty. That statement has put him at odds with his finance minister and business organisations that say the proposal is unaffordable.
“Our vision must be to promote employment rather than ever-increasing state-funded income support,” the Presidential Economic Advisory Council said in a briefing note sent to the president and seen by Bloomberg.
“We face a real danger of policy error at a macroeconomic level where we will limit our economy’s growth and job-creation potential by increasing the system of social grants payments in
You’ve reached your free article limit
Subscribe to enjoy unlimited access to trusted journalism. Cancel anytime.
Subscribe nowNeed help? molokom@insidepolitic.co.za
