Government plans basic income protection for South Africa: Ramaphosa

The government plans to introduce a basic level of social protection for the country’s most vulnerable workers, says President Cyril Ramaphosa.

Written in his weekly letter to the public, Ramaphosa said this would be done within the limited public finances of the country, with the government already providing support measures through systems such as the social assistance subsidy of emergency R350.

“With the end of the national state of disaster last month, we are working with various stakeholders on how to ensure that the subsidy continues to reach those who need it most. This is happening in addition to measures to reduce employment promotion, such as the Presidential Employment Stimulus, which has provided employment and livelihoods to more than 860,000 (people) since its inception.

It includes the expansion of the Employment Tax Incentive to encourage small businesses to employ more people, a loan guarantee scheme that has been redesigned to provide financing to smaller businesses, and the reduction of bureaucracy that the inhibits business growth. “

Ramaphosa said the government was also undertaking fundamental economic reforms that would improve the competitiveness and economic contribution of the energy, water, telecommunications and transport sectors. These reforms, coupled with increased investment in infrastructure, will enable faster economic growth and job creation, he said.

“In the long run, these reforms will unlock much higher economic growth. And as companies grow, they will create more jobs, help workers and unions in a virtuous cycle. The workers who gather at the Royal Bafokeng Stadium and millions of other people in however, our country cannot wait until the impact of these reforms is realized.

“Therefore, when we implement these measures, we try – within our limited public finances – to provide a basic level of social protection to the most vulnerable.”

How much – and who pays?

In February, the National Treasury said it was still considering it postpone for a universal basic income subsidy for South Africa, but it maintained that it could not be done in a fiscally irresponsible way.

Finance Minister Enoch Godongwana said that in view of the Covid-19-related job loss and growing poverty and inequality, Treasury and the government should seriously consider a basic income subsidy after the necessary consultation with relevant stakeholders.

These consultations would yield some results after the time of the 2022 budget. Treasury, however, said it has not yet responded to a basic income subsidy.

“The Covid-19 pandemic has heightened the national debate over the possibility of a universal subsidy for basic income, and the government is considering various proposals in this regard,” it said.

“All proposals to expand this system should be fully and appropriately funded by closing existing revenue-generating programs, or by permanently raising revenue.”

To read: SARS is ramping up its systems to track these taxpayers

Government plans basic income protection for South Africa: Ramaphosa

Source link Government plans basic income protection for South Africa: Ramaphosa

Back to top button