Economists maintain Treasury can’t afford SRD grant
They argue that the economy is not growing fast enough to pay for this grant.
Economists argue that the Treasury cannot sustain the Social Relief of Distress (SRD) grant due to a lack of sufficient tax revenue to cover the expenses. The grant, at R370 per month, is delivered to approximately 8.3 million beneficiaries, resulting in an annual cost of nearly R40 billion. The SRD grant, which was recently found to be unconstitutional by the Supreme Court of Appeal, currently faces opposition due to its financial strain on the government.
Inani Strategies' Xhanti Payi suggests linking the grant to employment opportunities, while Inani Strategies' Dawie Roodt emphasizes the need for spending reprioritization. Economist Gina Schoeman from Citibank highlights the urgency of finding funding alternatives for the SRD, as the current state of the economy leaves little room for additional expenditures.
Written by urgent.news from SABC News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
