The design of the proposed basic income grant is ”fundamentally flawed”, Minister of Finance Trevor Manuel said on Monday.
Speaking at the launch in Cape Town of the 2005/6 tax-filing season, he said there is no country in the world that has been able to implement it.
”If it works, it works because it’s a simple system,” he said.
The grant will cost South Africa about R89-billion, including a ”horrendous” amount of money for administration costs.
”It’s too big a risk … the country can’t afford it,” he said.
South Africa will do much better if it focuses on finding ways of relief targeted only at really poor people, with an administration system that eliminates the possibility of corruption. — Sapa