Hundreds of people marched to the Union Buildings to hand over a memorandum calling on President Cyril Ramaphosa to clearly lay out the state’s plans for a basic income grant in his upcoming State of the Nation Address. Photo: Chris Gilili via Groundup
Budget Speech 2023: SAFTU calls for R1500 Basic Income Grant
SAFTU has called for government to introduce a monthly Basic Income Grant of R1500 and a wealth tax to ensure the rich pay more tax.
Hundreds of people marched to the Union Buildings to hand over a memorandum calling on President Cyril Ramaphosa to clearly lay out the state’s plans for a basic income grant in his upcoming State of the Nation Address. Photo: Chris Gilili via Groundup
Ahead of the Budget Speech for the 2023/24 financial year, the South African Federation of Trade Unions (SAFTU) has once again called for government to introduce a Basic Income Grant of R1500.
Finance Minister, Enoch Godongwana is expected to deliver his National Budget on Wednesday, 23 February at the Cape Town City Hall.
SAFTU CALLS FOR BASIC INCOME GRANT OF R1500
In August 2022, SAFTU General-Secretary Zwelinzima Vavi proposed a Basic Income Grant of R1500 for South Africa’s unemployed to “offload the baggage on the employed members of the family and cushion the effects of unemployment on the 12.4 million people who are unemployed.”
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When questioned about where the money to fund the grant will come from, Vavi said SAFTU wants at least R1 trillion to be set aside for the government to use to intervene in times of crisis.
“All other progressive governments – even liberal governments like the USA – have had to do the same thing we are refusing to do.
The trade union has reiterated its proposal and also called for a wealth or solidarity tax to be introduced to ensure that the rich pay more tax.
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RAMAPHOSA CONFIRMS BASIC INCOME SUPPORT FOR SA
While delivering the State of the Nation Address (SONA) earlier in February, President Cyril Ramaphosa said around 60 percent of the country’s budget is spent on what is known as the social wage, providing various forms of support, basic services and assistance to households and individuals to combat poverty and hunger.
“Work is underway to develop a mechanism for targeted basic income support for the most vulnerable, within our fiscal constraints. This will build on the innovation we have introduced through the SRD Grant, including linking the data that we have across the government to make sure we reach all those who are in need,” he said.
ALSO READ: Basic Income Grant for SA ‘will be worth over three times more’ than R350 grant
Furthermore, Ramaphosa said to counter the rising cost of living, the Social Relief of Distress Grant, which is currently set at R350 and reportedly reaches around 7.8 million people, will continue.
“We will ensure that existing social grants are increased to cushion the poor against rising inflation,” he said.
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