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Panel Recommends Gradual Start to Basic Income Grant, Despite Affordability Concerns

SOUTH AFRICA
  • S. AFRICA PANEL RECOMMENDS GRADUAL START OF BASIC INCOME GRANT
  • As highlighted at the MTBPS, a decision to implement a BIG is a broadly negative fiscal development depending on its permanence and size
  • as Finmin Godongwana highlighted, using a temporary fiscal windfall to fund a permanent grant structure comes with many risks to SA's fiscal consolidation drive
  • The ANC's poor election showing and the omicron related travel bans may have pushed the panel in this direction, broadly against recommendations from Godongwana for more targeted measures to avoid grant dependency
  • Awaiting more colour on the above headline
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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