Is a basic income grant sustainable?

Posted in: Reports on September 16, 2021

Intellidex today releases an important paper on a basic income grant, assessing whether one is sustainable for South Africa and outlining the macroeconomic implications of proposals on the table.

Commissioned by Business Unity South Africa and Business Leadership South Africa, this independent research has a special focus on the fiscal and revenue/funding implications of a BIG. Deeply conscious of the need for sustainable upliftment and poverty alleviation, the research addresses:

  • Sustainability
  • Understanding first-order as well as second-order (and unintended) implications of very large tax hikes and debt funding demands within a budget-constrained environment
  • Assessing the risks that over-stepping the line would have on business

The report, Is a basic income grant sustainable, is designed to contribute to the broad discussions on social security reform, including a basic income grant. It presents a set of feasible mechanisms to achieve the desired outcome, while emphasising that further work is needed from a wider range of stakeholders, including modelling on the macroeconomic effects, detailed costings and impact analysis.

Download the report below.

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