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Here's how much it would cost taxpayers if the R350 grant is extended till next year.

It is now the bottom case view that the Social Relief of Distress (SRD) provide may be prolonged for as a minimum the 2022/23 financial yr, says Jeff Schultz, senior economist at BNP Paribas South Africa.

This comes because the country’s sales collections hold to outstrip expectancies through as plenty as 1% of GDP as compared with the November mid-time period price range estimates the National Treasury had projected, Schultz stated in a studies be aware on Tuesday (25 January).

Finance minister Enoch Godogwana has formerly indicated that any SRD extension might be contingent on in addition upsides to the country’s sales performance.

“Deteriorating socio-financial conditions, growing joblessness and extra acute inequality withinside the economic system recommend that an SRD extension for every other yr is a probable minimal requirement for the political financial system proper now. At a minimal, we anticipate every other 12 months of SRD extension to price the fiscus R35 billion.”

Both the ruling ANC and the country’s biggest exchange federation Cosatu have referred to as for the extension of the R350 social comfort of misery furnish delivered in reaction to the Covid-19 pandemic.

“The R350 Covid SRD provide has had a substantial tremendous effect at the lives of the negative, however greater especially the unemployed,” President Cyril Ramaphosa stated in a declaration on Sunday (23 January). “The authorities ought to look at the feasibility and affordability of presenting a few shape of profits help for the bad and unemployed.”

Ramaphosa, Godongwana and social improvement minister Lindiwe Zulu held conferences with civil society in mid-January to speak about the feasible extension of the supply and the viable creation of a fundamental profits supply.

“The assembly affirmed the want to paintings in the direction of low-priced and sustainable social safety mechanisms that supplement process advent and force nearby demand, with due attention of the financial implications,” the presidency stated.

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BNP Paribas South Africa Cyril Ramaphosa Enoch Godogwana R350 SRD


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