(Bloomberg) — South Africa’s government met Tuesday to discuss how to accelerate the country’s economic recovery and consider the most feasible way to provide further welfare grants.
The ruling African National Congress has agreed in principle on the need for a basic income grant and the government is now considering the most sustainable way to implement it, Minister in the Presidency Mondli Gungubele said in remarks broadcast on television broadcaster Newzroom Afrika.
Finance Minister Enoch Godongwana warned in a presentation to ANC officials last week that the government has limited budget space to fund the party’s project wish list. In addition to a range of social grants the government already offers, it introduced a special grant in July to mitigate against the effects of Covid-19 for those not currently receiving other payments.
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“The fact that the finance minister said there are fiscal pressures, does not change the fact that we need to find innovative ways on how to make sure that we deal with the desperations of people,” Gungubele said.
The cabinet will discuss whether or not the grant would be given to households or to individuals, he said. Godongwana will present a fiscal outlook to the gathering, and advise on expenditure pressures and whether there is a need to make any adjustments.
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