Social Development minister Lindiwe Zulu says that her department will move forward on plans to introduce a new basic income grant in South Africa.<\/p>\n
Presenting her departmental budget speech on Tuesday (25 May), Zulu said that the need to introduce a basic income grant has become an urgent consideration for the African National Congress-led government.<\/p>\n
“To this end, the Department has developed a Basic Income Grant (BIG) discussion document that we have started to consultations on,” she said.<\/p>\n
“These consultations are targeted at developing the BIG financing mechanism for the unemployed population group that is aged 19 \u2014 59 years.”<\/p>\n
Zulu said that a secondary process around a new BIG is being discussed by the National Economic Development and Labour Council (Nedlac).<\/p>\n
The pandemic prompted president Cyril Ramaphosa to announce a temporary top-up of existing grants by up to R300, including a R350 unemployment grant in late March 2020.<\/p>\n
The ANC has previously said that it will also look at the feasibility of introducing a basic income grant as part of a series of outcomes decided upon by its National Executive Committee (NEC).<\/p>\n
According to a June 2020 document seen by\u00a0Bloomberg<\/a><\/strong>, the ANC has proposed paying a R500 monthly grant to those aged 19 to 59 who aren\u2019t normally eligible for other aid. This would cost the state R197.8 billion a year.<\/p>\n Between 50% and 60% of the money could be recouped by levying extra taxes on those with jobs, it said.<\/p>\n
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