Basic income grant, pie in the sky for SA: Busisiwe Mavuso
Devon Thomas | Refilwe Moloto speaks to the CEO of Business Leadership South Africa, Busisiwe Mavuso, about why talk of a basic income grant does not belong in an ANC policy conference or on any national agenda in South Africa.
With 12.4 million people in the country in desperate need of government financial support, a basic income grant could be a solution.
But how sustainable is this grant to the country and the people who need it?
According to the CEO of Business Leadership South Africa, Busisiwe Mavuso, it is not sustainable.
She said the government was misguided in its approach to the grant because it entailed cutting expenditure, raising taxes and issuing more debt.
Mavuso wondered how the state could reduce expenditure with an already tight fiscal budget.
She said the proposed funding solution for the grant would destabilise the country's economy.
Instead, Mavuso explained, the government should focus on accountability and dealing with the issue of massive corruption costing the country billions.
[Corruption] runs so deep and it runs so high. So, dealing with the corruption in the current environment, for me, would need a reset button. It really needs a decisive government that is actually willing to take people out of their jobs and to take a no-nonsense approach to corruption. At the moment, we're not seeing that.Busisiwe Mavuso, CEO - Business Leadership South Africa
The solution, thus, should be on economic growth so that government evades another repeat of the 2021 July unrests.
We should be focusing on what we need to do to grow the economy. A growing economy, Refilwe, is the answer: it creates employment, it reduces poverty but it also generates taxable revenue that fills the state corpus and enables it to spend sustainable social priorities.Busisiwe Mavuso, CEO - Business Leadership South Africa
Listen to the full interview above.
This article first appeared on CapeTalk : Basic income grant, pie in the sky for SA: Busisiwe Mavuso