Cape Town - The Social Development Department was working with Finance Minister Godongwana and the National Treasury to ensure that the R350 social relief distress (SRD) grant was increased.
This was the view of Social Development Minister Lindiwe Zulu when responding to oral questions in the National Assembly from GOOD party MP Brett Herron, who said they were surprised that the grant was not increased in the Budget tabled by Finance Minister Enoch Godongwana last month.
Herron said the Budget review document regarded the SRD as a temporary grant and a fiscal risk. “When do you plan to implement the ANC policy resolution on the implementation of the Basic Income Grant (BIG)?” he asked.
In her response, Zulu said her department was working much closer with the National Treasury. “I am working quite closely with the minister of finance looking how we can ensure that the R350 is increased as it is seen as a stepping stone towards the BIG.
“At the same time, we are conscious of the fiscal challenge that South Africa has.
“We are also saying while the fiscal challenge is there, we must not lose sight of the people who are poor and have absolutely nothing,” she said.
Zulu said it would be better for the country to have the BIG so that people could have something to rely on.
“The struggle continues to convince my colleagues (in) the Department of Finance to look positively towards the R350, its extension, its increase and the introduction of the BIG.” Responding earlier to ANC MP Nonkosi Mvana, Zulu said since the Covid-19 pandemic and its devastating socio-economic impact, her department had looked at the question of what would happen once the R350 grant was discontinued.
She said an expert panel was appointed to assess the appropriateness of the basic income support and advice on complementary policy options, including policy reforms towards the social protection system.
“It concluded that SRD should be used as a starting point since it was set at an affordable level and did not present high fiscal risk for the government.
“However, the panel cautioned that such an approach will take longer to achieve a significant impact on poverty alleviation depending on how quickly and the value of grant increases over time.”
Zulu also said a second expert panel had conducted cost analysis of further options focusing on the short and medium term.
“The panel concluded that depending on the finance model, BIG can be introduced fiscally and economically in a sustainable manner, while at the same time having material impact on poverty and income inequality if implemented,” she said.
She said her department was looking at much more comprehensive social assistance.
“We believe when more jobs are created, less people will be dependent on social grants, especially the younger generation.”
However, DA Mp Bridget Masango said while the introduction of BIG was welcomed, the ANC was using the SRD for electioneering purposes.
“Why is it not at the centre of support in the minister of finance’s recent Budget?” she asked.
IFP MP Liesl van der Merve asked her about intervention for rolling out of BIG, considering the challenge faced by Sassa.
In her response, Zulu said she agreed that there were still challenges at the entity.
“I have said we have to take responsibility in those areas. It is for those reasons Sassa, long before thinking of the roll-out when the time comes, must fix the system.”
She said Sassa needed to transform for the better and use technology to service the people.
“We are conscious of the challenges we face and we understand the pain that is faced by our people,” Zulu said.
Cape Times