Income grant ‘likely in the next budget’

● Government discussions on the possible introduction of a basic income grant are at an advanced stage — so much so that the details could be contained in next year’s budget.

This is according to Duma Gqubule from the Centre of Economic Development & Transformation, who told the Sunday Times that finance minister Tito Mboweni was likely to include it in his speech next year.

Negotiations around the basic income grant, which have been taking place for years, were expedited following the recent unrest in KwaZulu-Natal and Gauteng.

“I believe, in one form or the other, we will have a basic income grant at the next budget in February, ” Gqubule said.

He said there was overwhelming support for the grant, with those who had previously been opposed to it having seemingly changed their tune.

“I think the opposition to it has crumbled because of what happened over the past three weeks.

“I was at the ANC webinar [and] there are few people against. In the past it was opposed by a lot of people.”

Mboweni declined to comment on this, referring queries to social development minister Lindiwe Zulu.

Gqubule said he had met Zulu this week and picked up that she was in favour of the introduction of a basic income grant as her legacy.

The ANC’s economic transformation committee had a lengthy debate recently where, according to insiders, its chair, Enoch Godongwana, pushed guaranteed jobs, similar to the expanded public works programme, and Zulu argued for a grant.

A job guarantee may be a lot more expensive as the government would not be legally allowed to pay below the prescribed minimum wage of R3,500. A basic income grant may be anything between R530 and R1,300.

The matter was moved to economic policy discussion forum Nedlac, and is now at the National Treasury, which will have to decide — and find the money.

Cosatu intensified its calls for a basic income grant during the first lockdown last year.

Lebogang Mulaisi, Cosatu’s labour market co-ordinator, said it did not make sense that there were still debates about it.

“This should have been done ages ago, there has just not been political will to do it. It took a whole pandemic for us to realise just how dire the poverty issue is for our society,” she said.

Mulaisi said Cosatu’s immediate task was to ensure that the R350 social relief of distress grant that was recently reintroduced would be extended beyond March 2022 and turned into a basic income grant.