Finance Minister Enoch Godongwana Discusses Possible Basic Income Grant: “Nothing Falls Free From the Sky”

• Minister of Finance Enoch Godongwana delivered the 2023/24 budget speech on Wednesday, 22 February
• Ahead of the parliamentary address, he said citizens will have to pay more tax if they want a basic income grant
• Many were appalled by the possibility of paying more tax, with some saying the government failed citizens

CAPE TOWN - Finance Minister Enoch Godongwana explained that the proposed implementation of a basic income grant comes with additional issues.

He was speaking at a media briefing ahead of the 2023/24 budget speech in Parliament on Wednesday, 22 February and warned that introducing a new grant would mean increased taxes.

Godongwana said taxes would not be increased during this year’s budget, but next year may be different. He said taxes are raised for various reasons, but not without a warning, according to TimesLIVE.

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The finance minister said if the R350 social relief of distress (SRD) grant is turned into a basic income grant, citizens will be forced to pay more tax.

The SRD was introduced to assist South Africans to navigate the Covid-19 pandemic, but there have been numerous calls for it to be converted into a permanent grant.

Meanwhile, Godongwana also announced that National Treasury has a fiscal strategy to balance the country’s financial issues. EWN reported that he believes the strategy will protect social wages and maintain a positive balance sheet without borrowing and increasing taxes.

The minister also announced the implementation of a tax rebate scheme to encourage homeowners to install solar panels on their properties. He believes the move will reduce citizens’ dependency on the national grid.

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Mzansi reacts to possible basic income grant

@Dijosti said:

“Nothing falls free from the sky. Those who are working will subsidise the basic income grant. It's as simple as I can possibly put it.”

@Bond00613 commented:

“Signs of a failed state that can’t create jobs for its people.Grants are not an achievement.”

@serialidioot posted:

“Only increase taxes from the ANC. Only fair since they have caused the chaos this country is in. Maybe get back the money that has been stolen.”

@Skhokho00757418 wrote:

“People need jobs, and not all these handouts of cash and RDPs to the young.”

@Shady_Lurker added:

“That’s why even entertaining the idea of introducing one is dom.”

DA’s alternative budget: Opposition party plans to create jobs and improve Mzansi’s living standard

Briefly News also reported that the Democratic Alliance believes it has the answers to South Africa’s financial problems.

The opposition party drew up an alternative budget plan for the year which it believes will increase jobs, reduce public debt, improve living standards and attract investment. The proposed budget would provide a fiscal policy platform.

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In a statement, the DA said it plans to reform state-owned enterprises, contain debt, fight the high cost of living, tackle corruption and establish a foundation for sustainable economic growth.

Source: Briefly News