This is due to the risks it holds for the country and the damage it would do to economic growth and job creation. The council also criticised the expert report commissioned by the Department of Social Development – which concluded a basic income support grant was sustainable for the economy – saying the report was technically flawed, had grossly underestimated the risks, and should be submitted for peer review.
Meanwhile, a senior economist says it’s likely that government will again announce the extension of the R350 Covid-19 social relief of distress grant during the budget speech next month. Jeff Schultz from BNP Paribas South Africa says the extension could end up costing R35 billion.
