Nokukhanya Mntambo11 January 2024 | 8:16

With correct modelling, a basic income grant is attainable in SA: Researchers

The Institute for Economic Justice and the Applied Development Research Solutions recently found that the introduction of a wealth tax and social welfare tax could help fund the basic income grant.

With correct modelling, a basic income grant is attainable in SA: Researchers

FILE: Social distancing is enforced at a shopping centre where social grant recipients are collecting their payouts on 30 March 2020. Picture: @The_DSD/Twitter

JOHANNESBURG - Human rights organisation Black Sash has hit out at what it calls cheap politicking in the buildup to this year’s general elections.

The upcoming polls are expected to be hotly contested as opposition parties look to capitalise on the African National Congress (ANC)'s waning power.

Social grants are among the big-ticket items on election campaigns, with some calls for the introduction of a basic income grant of about R1,000.

The organisation’s director, Rachel Bukasa, said there is merit to a recent study challenging the widespread view that government can’t afford to fund a new social grant.

The Institute for Economic Justice and the Applied Development Research Solutions recently found that the introduction of a wealth tax and social welfare tax could help fund the basic income grant.

"But government’s refusal to do that is a sign that they know that there is an alternative, but they want to stick to the narrative that there isn’t enough money, it cannot be afforded and if we do that, the rich are going to leave the country and they’re sticking to that.

"This is the first study that’s shown that with the correct modelling, a basic income grant can be done and can be done effectively,” Bukasa said.

The director added that she is worried that social grants will be used to get votes from the electorate but ditched by politicians post the elections.

“It’s actually shocking on so many levels that at this stage we’re at, that political parties think that it’s appropriate to use grants as a thing over poor people’s heads. It actually shameful.

“To be quite frank, it’s not a favour that government is doing for people, it’s a Constitutional obligation.”