South Africa’s economy cannot handle the mounting pressure as more people become dependent on government grants
South Africa’s main focus must not be giving people a welfare grant on which to survive, it ought to be creating jobs so that the unemployed can be truly uplifted and empowered to generate their own income.
Extending the current Covid-19 relief grant will cost South Africa R44,4 billion in the coming financial year. It means that the government’s expenditure on social grants for 2022/23 will increase to a record R364,4 billion.
It amounts to 3,9% of the country’s total GDP, or 48% of next year’s total budget.
The Minister of Finance, Enoch Godongwane, announced in his recent Budget Speech that the grant will be extended with one more year. The problem with this is that the people are becoming more and more dependent on government aid, and it becomes all the more difficult to do away with it later.
Clearly, South Africa’s struggling economy cannot carry this enormous burden. Thus, calls from the ANC to expand the Comprehensive Social Security System are out of the question. And the reason is simple: there is no money to do so.
At present, the country has to borrow money to cover its social expenses.
The fact that so many people are dependent on a grant is certainly not a compliment, instead, it proves that the ANC has failed as a government.
Plans regarding pension reforms warrant very careful consideration. It must not create a situation where people are increasingly dependent on the government for old age grants.
At the moment, the grant is already insufficient and does not come close to the minimum wage.
Moreover, it is important to ensure that teachers are not lost. It will further weaken the country’s already weak educational system, which cannot be afforded.
A sound educational system is vital for adequately preparing the youth for the future and enabling them to help build the country and its economy.
There ought to be a strong focus on ensuring good quality education to empower the youth to become self-sufficient. It is short-sighted to think that welfare is the only way to provide some form of income for the people.
Instead, job creation and entrepreneurship ought to be encouraged. There is a well-known saying that goes: “Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime.”
The ANC government would do well to take note of it.
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South Africa’s economy cannot handle the mounting pressure as more people become dependent on government grants
– Tammy Breedt, FF Plus MP and spokesperson on Social Development