The social development department has been allocated R35.7 billion to fund the extended social relief of distress grant
A healthier public purse could signal better days ahead, but a lot remains to be seen
The minister’s medium-term budget policy statement had to balance the fiscal risk of state-owned entities and the threat their collapse posed for the economy
In its economic survey, the OECD recommends increasing VAT or broadening the base of corporate and personal income taxes to pay for the grant
Enoch Godongwana is currently seized with preparations for the medium-term budget, which will give details on whether fiscal stability is still possible
The July 2021 unrest was shocking and many have since warned that those tensions could be easily reignited
It could prove difficult for government to loosen its grip on the public purse, but economists say the current extraordinary circumstances require intervention
Some of the conditions in which the July unrest occurred have abated but others, such as the spiralling cost of living, have worsened
Disagreements over a basic income grant, labour law reform and how to save the economy mean consensus is still far off. But trade-offs – and political shifts – will eventually have to be made for there to be any hope of real change
In the meantime, government will mull the best options to replace this grant with another form of income support
The president promised that the state will act on the findings of the Zondo commission and vowed to cut red tape to facilitate job creation
A basic income grant could add 0.5% to GDP growth by 2025, according to a report commissioned by the National Economic Development and Labour Council.
Nearly half of the population in South Africa — one of the most unequal countries in the world — is considered chronically poor.
The ANC president said the basic income grant should be cost effective and subject to long-term affordability
Treasury officials will model the effect of the grant on the fiscus if the need arises
Previously, the government had said people aged between 18 and 35 years would be eligible to be vaccinated only from September
The new finance minister has a difficult task, but analysts say his political capital will help him hold a hard line on state spending
The mining industry is riding a wave that will eventually crash, analysts warn
Asylum seekers with valid permits and caregivers will now also be allowed to apply for the reinstituted social relief of distress grant
The finance minister extended the Ters relief and the social distress relief grant, and also ensured businesses hit by looting can access insurance
Analysts agree that economic relief for the poor is needed but are split on whether a grant should be permanent and whether it is affordable
The Covid-19 relief grant helped millions of South Africans, but it ended in January. The M&G spoke to unemployed youth who found the money helpful