Medium-term budget: Basic income grant decision deferred to next year: The finance minister says more grants would mean the money would have to be cut elsewhere as he sticks to fiscal consolidation
was almost certainly never going to announce new social grants on Thursday and his maiden medium-term budget policy statement deferred the issue to the main budget in February.per se. Nor does it allude the findings of a study on the subject commissioned by the treasury. Instead it speaks of three priorities, the first being “addressing shortfalls in social grants”.
Godongwana, after just more than 100 days in the post, told the media the decision was not his alone, but that of the cabinet, and would come later.He was blunt in saying that should a new grant be introduced or the current R350 social relief distress grant be extended again, the collective would have to decide where else to cut spending to make it possible.
“We have not said that. We know that the extension ends at the end of March. Whether they want to extend it beyond the end of March is the government’s call.The current six-month extension of the benefit has cost the state R26.7-billion, and Godongwana suggested that extending it for the year should cost R40-billion.
The MTBPS stresses that there are already 18.3 million citizens who receive one or another form of welfare grant, excluding those who benefit from the social relief distress, and that fiscal consolidation remains a priority, and tighter monetary policy and borrowing conditions a real risk.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Medium-term Budget: Economic growth prospects remain bleak - The Mail & GuardianMedium-term Budget: Economic growth prospects remain bleak: Inadequate electricity supply and the effects of the Covid-19 pandemic remain a binding constraint on economic recovery in the near term, says the treasury
Read more »
IN FULL | Godongwana delivers medium-term budget in 'unprecedented conditions'Finance minister Enoch Godongwana on Thursday delivered the medium-term budget policy statement, with a focus on growing the country's economy.
Read more »
Experts weigh in on what to expect from the medium-term budgetInvestment and economic analysts hope to see the new finance minister prioritise policies that grow the economy and ease SA out of its tight, debt-heavy fiscal position.
Read more »
Rand muted ahead of the medium-term budgetTreasuryONE says that the ‘biggest jump in US inflation in 30 years stoked inflation fears’, while the dollar strengthened sharply
Read more »
Experts weigh in on what to expect from the medium-term budgetInvestment and economic analysts hope to see the new finance minister prioritise policies that grow the economy and ease SA out of its tight, debt-heavy fiscal position.
Read more »
WATCH: What to expect from SA’s medium-term budgetBusiness Day TV spoke to Siobhan Redford from RMB about the medium-term budget policy statement
Read more »