The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
The Common Fundamental Revenue Coalition (Ubic) says that it’s “deeply involved on the Nationwide Treasury’s ongoing makes an attempt to pit the pursuits of susceptible constituencies towards one another and to fabricate a way of panic round a ‘fiscal cliff’, with a purpose to drive by means of pointless and lethal cuts to social spending”.
“Particularly, we reject Treasury’s threats to boost VAT or minimize important spending on the Baby Assist Grant or different public companies, with a purpose to protect the Social Reduction of Misery (SRD) grant.”
This was in response to the Treasury’s proposals to fund an extension of the SRD grant by means of regressive tax will increase and finances cuts in a cost-containment letter issued to authorities departments on 31 August.
The coalition includes the next civil society organisations: #PayTheGrants, Various Info and Growth Centre, Black Sash, Youngsters’s Institute, College of Cape City, Institute for Financial Justice, RightfulShare An Revenue Motion, Social Coverage Initiative and Youth Lab.
Minister of Finance Enoch Godongwana. (Photograph: Gallo Photographs / Brenton Geach)
Dr Gilad Isaacs, an economist and co-founder of the Institute for Financial Justice, stated: “Producing a way of disaster within the lead-up to the Medium-Time period Finances Coverage Assertion (MTBPS) in [November], primes the general public to swallow but extra lethal, pointless and unconscionable spending cuts with out query. That is additionally getting used to bully authorities departments together with well being, training and social growth into submission.”
Professor Alex van den Heever, of the Wits Faculty of Governance, advised Every day Maverick, “I’d concur with the statements by the Common Fundamental Revenue Coalition concerning Nationwide Treasury’s public statements. The skilled panel I chaired discovered that VAT funding for social safety had unfavorable financial and social outcomes relative to extra progressive measures. The SRD grant has, nevertheless, been financed thus far, and it was our discovering that no extra taxes had been required for it to be made everlasting.
“But when residual tax will increase had been to some extent wanted, these ought to deal with private revenue taxes. The arguments that different essential social programmes have to be minimize to finance the SRD grant don’t seem believable, as extra funds have been allotted with out a lot fuss to programmes Nationwide Treasury agrees with — comparable to employment subsidies and one-off particular employment programmes — that are poorly focused, don’t catalyse employment and don’t present revenue safety to the overwhelming majority of income-compromised households.”
Learn extra in Every day Maverick: SA’s supply of essential companies underneath risk after Treasury desperately requires public ‘fiscal consolidation’
The coalition has made short-, medium- and long-term representations to the Treasury about how the R350 SRD grant can transition right into a workable common primary revenue. These embody:
- Instantly enhance the SRD grant to R450 to compensate for meals inflation since 2020;
- By March 2024, enhance the SRD and Baby Social Grants to the Meals Poverty Line of R663;
- Put in place timeframes to extend the grant to the Higher-Sure Poverty Line;
- Within the medium time period, increase the tax threshold, which is presently round R95,000 every year or R7,900 per thirty days; and
- In the long run, abolish the brink to take away exclusions related to means testing.
Constitutional obligation
The Ubic assertion goes on to say: “Nationwide Treasury has a constitutional obligation to fund and regularly enhance the SRD. That is true additionally of the Baby Assist Grant [CSG] which ensures 13 million youngsters have primary diet and primary companies together with well being, training and social growth.
“The state is ready to entry the sources to sustainably fund the SRD grant alongside persevering with to fund all different social grants and primary companies — however Nationwide Treasury refuses to faucet into them as a result of it stays wedded to slim macroeconomic dogma.
“Extending the SRD past March 2024, and growing each the SRD and CSG grants to the meals poverty line (now R760), is absolutely the naked minimal that civil society has been calling for, with a purpose to advance primary socioeconomic rights specified by the Structure and the Worldwide Covenant on Financial, Cultural and Social Rights.”
Nomahlubi Jakuja from Youth Lab, a non-profit that’s a part of the coalition, advised Every day Maverick, “Ought to austerity prevail, if Treasury cuts spending it is going to have a major affect on the people who find themselves closely depending on authorities companies for healthcare, training and social grants”.
Black Sash protesters demand that the federal government implement everlasting primary revenue assist. (Photograph: Black Sash)
Jakuja stated “a caring authorities” would perceive the significance of accelerating spending to supply free companies for grant recipients, who she stated had been essentially the most susceptible members of society.
Professor Sandra Liebenberg, the chair in Human Rights Regulation at Stellenbosch College’s Regulation School, stated: “Latest experiences that Treasury has steered that to keep up the SRD grant it will be needed to boost VAT or minimize important spending on different social grants and authorities programmes raises the stark query of how constitutional rights characteristic in budgetary and financial decision-making.
“Whereas troublesome trade-offs undoubtedly should be made to make sure the sustainability of South Africa’s public funds, these trade-offs have to be knowledgeable by constitutional rights, notably these rights which can be key to defending the survival and human dignity of deprived and susceptible teams in our society.
“The Structure is the supreme legislation of the nation and binds all organs of state, together with the Nationwide Treasury. Treasury ought to thus be required to justify the reasonableness and necessity, given different fiscal and cost-saving choices at its disposal, of implementing regressive taxes comparable to VAT and cuts to different social programmes with a purpose to keep a significant programme implementing the correct of everybody to have entry to social help — the SRD programme.”
Van den Heever stated, “It’s a extensively held view, which I agree with, that authorities is able to minimize expenditure in a number of areas with restricted social affect. To the extent that austerity is required, it must be focused on the wasted expenditure, and keep away from harming essentially the most susceptible.”
That is according to the coalition’s suggestion to boost additional income by reversing the latest cuts to company tax, eradicating tax breaks for high-income earners, and meaningfully addressing the under-taxation of wealth. The coalition maintained that it will vehemently oppose Treasury’s proposed austerity measures.
Responding to the outcry concerning the letter, Minister within the Presidency Khumbudzo Ntshavheni has since said that Godongwana would “shortly subject” pointers clarifying the “unintended misunderstanding” brought on by the cost-containment letter issued on 31 August. DM
