Activists and economists alike are calling for a reconsideration of the proposed cuts, urging the government to prioritise the most vulnerable members of society rather than sacrificing their wellbeing in the name of fiscal responsibility.
Elizabeth Raiters, a prominent social justice Advocate and Deputy Chairperson of the #PayTheGrants campaign, has been vocal in her opposition to the proposed cuts. She believes that the government is dangerously overlooking the reality that millions of South Africans rely on social grants to survive.
"The government cannot continue to ignore the reality that millions of South Africans are dependent on social grants to survive," says Raiters. "The focus should not be on raising taxes but on protecting the most vulnerable citizens. Scrapping the Social Relief of Distress (SRD) grant is not an option. The millions of people who rely on it are already living in extreme poverty."
Her concerns have become more pressing in light of the government's announcement that the SRD grant, which helps millions of unemployed South Africans, could be discontinued. Raiters argues that these cuts will disproportionately affect the poor, further entrenching inequality in the country.
Raiters's calls for action are supported by a growing number of activists and organisations who believe the government must shift its focus towards protecting the most vulnerable, rather than continuing with austerity measures that impact those already struggling. With the rise in unemployment and inflation, many fear that removing or reducing the SRD grant will push millions more South Africans into poverty.
In contrast to Raiters's calls for maintaining social safety nets, there are voices within the co-governing African National Congress (ANC) who argue that fiscal discipline must be the priority. ANC Secretary-General Fikile Mbalula recently pointed out the need for a balance between addressing immediate social needs and ensuring the long-term fiscal health of the nation.
"The budget must address both the immediate needs of the people and the long-term fiscal health of the nation," Mbalula said. "It's a delicate balance, but we’re determined to make sure the poorest are not left behind."
However, Mbalula's words have done little to quell concerns over the potential impact of cuts to the SRD grant, which serves as a lifeline for millions. Activists such as Raiters are adamant that such cuts would send a clear message that the government is abandoning its most vulnerable citizens.
Dr Azar Jammine, an Economist with the SA Policy Institute offers a different perspective on the situation. He argues that the solution lies not in austerity or cuts, but in improving efficiency within the government's spending practices. According to Jammine, the key to balancing the budget lies in sustainable revenue growth and rethinking public expenditure.
"It’s not just about saving money. It's about how the money is spent," he explains. "Yes, there is a need to reform our tax system, but the focus should be on improving efficiency in public spending. Simply raising taxes or slashing grants isn’t going to fix the underlying problem."
Jammine also highlights the need for a tax system that works for all South Africans, rather than one that disproportionately burdens the poorest while the wealthiest evade their responsibilities. He advocates for greater transparency and accountability within the tax system, arguing that the wealthy should be paying their fair share.
"We cannot keep putting the burden on the poorest while the wealthiest continue to benefit from loopholes and tax evasion," Jammine says. "We need to have a tax system that works for everyone, not just the few who can afford to evade their responsibilities."
For Raiters, the future of the SRD grant is a litmus test for the ANC’s commitment to social justice. "If the government goes ahead with its plan to cut the SRD, it will be an unequivocal message that the ANC has turned its back on the poor," she warns.
--ChannelAfrica--
