One of the Department of Social Development's (DSD) main priorities for the current financial year is poverty alleviation. One strategy for this which is being discussed is the introduction of a Basic Income Grant.
With a budget of R263 billion for the 2023/24 financial year, Minister for the department, Lindiwe Zulu, said that this will go towards "building a capable, responsive, ethical and fit for purpose Social Development portfolio" and hopefully, implementing a Basic Income Grant.
Working together with other government departments, we will produce South Africa’s poverty alleviation strategy which includes the policy on the basic income support for 18-59 year old people who are not working.
This basic income grant would see those who are unemployed and between the ages of 18 and 59 years old receive a monthly payment. How much and if and when this will be implemented hasn't been revealed yet.
The introduction of the Covid-19 Social Relief of Distress (SRD) grant opened up conversations about a more permanent solution for the unemployed in South Africa.
Here's What We Know About The Basic Income Grant
Black Sash, along with other civil society organisations, have demanded that the SRD grant be made the Basic Income Grant and that it's total be raised to at least the monthly Food Poverty Line of R663.
The Department has been investigating ways it could introduce basic income support for vulnerable adults, and finally, the Department now believes that it is possible to implement a Basic Income Grant in a way that is financially sustainable and does not comprise economic growth.
During the 2023 State of the Nation Address (SONA), President Cyril Ramphosa announced that work was underway to develop a mechanism for a targeted Basic Income Support (BIS) for the most vulnerable citizens.
Owing to the rising cost of living, and with the view to cushion the most vulnerable among South Africans from the effects of known and novel risks alike, the Social Development portfolio is in the process of devising a Basic Income Support.
South African Social Security Agency (Sassa)
Sassa falls under the DSD with R253 billion of this year's budget going towards directly paying 27 million beneficiaries by March 2024. The Minister said Sassa’s allocation is an estimated 96.4% of the department’s total budget, which goes to beneficiaries.
R35.7 billion of the budget allocation for this financial year will go towards paying for the implementation and administration of the SRD grant until March 2024, which is also expected to be it's end date. This is when South Africans are hoping the Basic Income Grant would be implemented.
The department’s total budget allocation also includes an amount of R7.8 billion which will pay for the administration of Sassa grants and R5.8 billion for Sassa grant increases.
