Income

Basic income grant, pie in the sky for SA: Busisiwe Mavuso

Devon Thomas

| Refilwe Moloto speaks with Business Leadership South Africa CEO Busisiwe Mavuso on why talking about a basic income grant has no place in an ANC policy conference or on a national agenda in South Africa.

With 12.4 million people in the country desperate for financial support from the government, a basic income grant could be a solution.

But how sustainable is this grant for the country and the people who need it?

According to the CEO of Business Leadership South Africa, Busisiwe Mavuso, this is not sustainable.

She said the government was wrong in its approach to the subsidy because it involved cutting spending, raising taxes and issuing more debt.

Mavuso wondered how the state could cut spending with an already tight fiscal budget.

She said the proposed financing solution for the grant would destabilize the country’s economy.

Instead, Mavuso explained, the government should focus on accountability and address the problem of massive corruption that is costing the country billions.

[Corruption] goes so deep and it goes so high. So dealing with corruption in the current environment, for me, would need a reset button. He really needs a decisive government that is actually prepared to take people out of their jobs and take a sensible approach to corruption. At the moment, we don’t see that.

Busisiwe Mavuso, CEO – Business Leadership South Africa

The solution should therefore be based on economic growth so that the government avoids a new repetition of the troubles of July 2021.

We should focus on what we need to do to grow the economy. A growing economy, Refilwe, is the answer: it creates jobs, it reduces poverty, but it also generates taxable income that fills the corpus of the state and allows it to sustainably spend on 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