#PayTheGrants
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#PayTheGrants
@PayTheGrants
#PayTheGrants is a people’s campaign advocating for economic justice - demanding a Universal Basic Income Guarantee (UBIG). Reweet ≠ Endorsement

































NO! We don't need to find new revenue to fund the SRD Grant One thing many commentators on the budget crisis (including Haroon Bhorat, Michael Sachs, and media commentators) are getting wrong is their premise that the R35bn SRD grant is 'new expenditure' that has to be funded. This myth is part of the narrative of an (artificially created) fiscal crisis that Treasury has manufactured for reasons we need to discuss. However, a R35 billion allocation for the SRD grant was included in the 2024 MTEF budget baseline for 2025/6 -although hidden in a provisional budget item (discovered when Treasury was challenged on funding for the grant}. Thus it is important to correct the distortion that some level of a VAT increase, while 'regrettable', is necessary to fund the SRD grant- and that the increase would be palatable because funding the grant is redistributive. This assumption is patently incorrect, because no additional revenue is needed. The only new funding required for the SRD Grant would be in the event of an inflationary increase, or if it were expanded and improved to implement the rulings of the High Court. However, Treasury has appealed the judgment. Of course an increase would be desirable, but no further funding is necessary to retain the status quo (the R35bn allocation), as Treasury had proposed. #Budget2025 #VAT

STATEMENT | The postponed budget gives SA a chance to rethink harmful tax hikes & underinvestment. SA needs progressive revenue measures that support development & protect the vulnerable. The IEJ unpacks alternatives. Read more 👉🏾 iej.org.za/iej-statement_…






