SOUTH Africa’s extension of a monthly grant for the jobless means there’ll continue to be twice as many welfare beneficiaries as registered taxpayers, highlighting the challenge the government faces in trying to sustainably support the legions of unemployed and poor.
President Cyril Ramaphosa last week extended the temporary monthly stipend of R350 ($23), first introduced in response to the pandemic in 2020, through to March 2023.
The measure has added about 10.3 million people to the welfare net and was fueled by record unemployment and deepening poverty in the world’s most unequal nation. Civil rights groups and academics have been calling for a permanent basic income grant.
The government can afford the latest measure because high commodity prices have put revenue on course to exceed budget estimates.
Economists, including Old Mutual Investment Group’s Johann Els, expect further extensions, enabling the state to defer a decision on a basic income grant
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