- The South African government says they will find a way to implement a Basic Income Grant for citizens despite financial challenges
- Minister in the Presidency Mondli Gungubele said the ruling party has agreed that such a grant is necessary
- Gungubele also says cabinet ministers will soon be discussing how the grant will actually be implemented
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JOHANNESBURG - Talks of a Basic Income Grant for South African citizens have intensified in the past few months with some organisations being for the implementation of the grant and others warning that introducing the grant will be bad for the country.
It seems, despite warnings from Finance Minister Enoch Gondogwana that the country's budget is a little tight, the South African government plans to move ahead with the grant.
Minister in the Presidency Mondli Gungubele said in a television interview that the African National Congress has come to the consensus that a basic income grant is necessary for South Africans and they are currently exploring the best ways to implement it, according to Business Tech.
Gungubele stated they are aware of the fiscal challenges South Africa faces, however, the ruling party says these challenges should not stop them from trying to find a way to implement the grant.
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Gungubele added that cabinet ministers will still need to meet and discuss whether the grant will be given to households or individuals.
Basic Income Grant necessary to combat inequality in South Africa
Brett Herron, a member of the Western Cape provincial legislature says the implementation of a Basic Income Grant will South Africa deal with inequality and help those affected by the high unemployment rate, reports the Daily Maverick.
Herron explains that South Africa's economy does not have the means to produce enough employment for all citizens.
He further explains that the implementation of the grant is crucial for the sustainability of the country's constitutional democracy on a moral, social and historical level.
Poverty and Inequality Institute push for an increased Basic Income Grant
Briefly News previously reported that the Poverty and Inequality Institute actively expressed the necessity of a basic income grant valued at R1 268 per month.
Last month, Stats SA released an updated Quarterly Labour Force Survey for the first quarter of 2021. The report shows an increase in the number of unemployed people in South Africa, to an all-time high of 32.6%.
The report indicates that the amount of unemployed people has increased by 28 000 bringing the amount close to 7.2 million South Africans.
President Cyril Ramaphosa stated that the government is considering whether or not implementing the grant is practical according to CapeTalk. The unemployment rate according to the expanded definition increased to 43.2% in the first quarter.