Economists Weigh in On Potential for a Basic Income Grant, Tax Hikes

LOCAL NEWS

• Econometrix Chief Economist says the only way a basic income grant at the Feb budget can be affordable is if all other grants are scrapped.
  • Notes that boosting issuance to pay for the scheme has been proven to be short-sighted and is unlikely to work over the longer-term.
  • Says the extension of the Covis-19 SRD grant for the year would cost 1% of GDP vs 5% on a basic income grant on top of all current grants. Another economist warned that that a 2% increase to personal income tax would be needed if Govt caves to a basic income grant
• SA scientists are calling for an end to the state of disaster, saying that the focus needs to shift to continuing the vaccine rollout.
  • Also note that the policy has allowed politicians to act in irrational and unscientific ways, without any accountability or transparency – and this must come to an end
• ANC says it is concerned by the impact of a protracted strike by employees over unpaid wages since October.
• The party says it may experience delays as it tries to renew the mandates of its branches, regions and provinces ahead of the December elective conference.
  • The ANC’s goal is to renew mandates before the mid-year conference, but this is looking challenging