KZN beneficiaries urged to collect Money at Retailers and ATMs. Image: iStock
Huge actions are required to maintain the R350 SRD grant
The National Treasury has warned the government that in order to maintain funds for the R350 SRD Grant, huge sacrifices must be made.
KZN beneficiaries urged to collect Money at Retailers and ATMs. Image: iStock
The government has been warned by the National Treasury that in order to maintain funds for the R350 Social Relief of Distress Grant (SRD Grant), either a tax increase or significant spending cuts are required.
The economic situation is difficult as a result of significant load shedding, persistent inflation, and weak growth.
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What exactly is needed for R350 SRD grant to continue?
Sunday Times reported, the National Treasury recommended a two percentage point rise in VAT should the government decide to keep supporting the SRD Grant.
The alternative is to cut down a number of government programs, such as visible police presence, the enlarged public works program, and the mine health and safety inspectorate.
Welfare assistance, environmental protection, and programs for improving informal slum conditions are among the other efforts that could be cut.
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What did ANCYL President request?
On the other hand, Collen Malatji, the president of the ANCYL, declared that the SRD grant must be made permanent and raised to R1,500 per month.
He said this, on Sunday, 10 September, at the organization’s 79th birthday festivities in Mpumalanga.
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Additionally, he stated that graduates who are unemployed should receive a similar grant of R4,500 per month.
Malatji stated, “We [ANCYL] are urging the ANC-led government to increase and institute an unemployment stipend.
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What may have inspired the ANCYL President to request such?
This call from the ANCYL is probably inspired by President Cyril Ramaphosa, who said last weekend that the R350 grant served as a foundation for the introduction of a Basic Income Grant (BIG).
He claimed that the R350 grant’s successful execution has demonstrated the government’s ability to implement a BIG of a like sort.
Now, if the government were to implement these, it would call for a more tax hike.
