SRD Grants to End in 2025: Universal Basic Income Will Replace The SRD

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After the elections in South Africa in May 2024, a huge impact has been produced that will alter the SRD Grant to Universal Basic Income. UBI’s main purpose is to provide financial freedom in the overall country without any strict eligibility criteria, and the main purpose of the UBI is to announce a long-term solution to the South African economy.

SRD Grants to End in 2025

If the UBI is implemented, South Africa will become the first country to provide huge financial support to its people through Universal Basic Income (UBI). The payment mostly includes adults aged between 18 to 59 years to be considered UBI Grant.

Nowadays SRD is a lifeline for million of south africans because they are supporting multiple needy people for financial freedom for life . The SRD Grant was introduced during the peak of the Covid- 19 and provide financial support to those in most need. The SRD offers support only for basic monthly food needs.

The Recent Government introduced UBI to replace the SRD Grant by expanding financial support to the adults of South Africa according to their income level. The SRD financial funds distribution is too difficult, testing process for financial funds is simple it may take one or two years to replace SRD with UBI slowly.

What is the current status and extension of the SRD?

Finance Minister Enoch Godongwana announced in the medium-term budget policy statement 2023/2024 that the SRD grant has been extended until March 2025. This extension comes with a substantial allocation of R34 million, demonstrating the government’s commitment to sustaining this vital social relief.

Is Universal Basic Income (UBI) possible to Deliver Financial Support?

There are several challenges for the South African government in delivering financial support to anyone living in the entire country, so the government has introduced a Universal Basic Income UBI Grant.

  1.  The Collection of huge amounts at the time is a huge challenge for the government of South Africa, which may face problems.
  2. Introducing the Universal Grant may face  build up problems due to the time huge project build-up takes time.
  3. It is a complex task for the governments that ensure UBI reaches the intended grant beneficiaries.

 

What is the Global perspective on the UBI grant?

It is not only South Africa, there are many countries experienced with UBI and explored its policies. Here are some countries below –

  1. During the worst time of COVID-19, Spain introduced the UBI scheme to give a 1015 euro per month grant who mostly need it.
  2. The United States of America has also distributed $1200 to millions of needy people, but it was short-term financial relief.
  3. Kenya has already experienced with UBI, recipients used funds to improve their income, reduce poverty, start small businesses and produce the huge impact on Kenya’s economy.

What are the key benefits of UBI compared to SRD?

There are multiple impacts will be produced after the implementation of UBI. Here are some benefits by the transition of UBI are as follows-

  • Universal Basic Income is more advanced compared to SRB grant. UBI has more features and offers comprehensive solutions to poverty to be eliminated in South Africa.
  • The current situation of the digital progress in South Africa is too difficult due to lack of internet services, so UBI introduced an easily accessible system that is not dependent on the internet and easily receives their grant.
  • UBI can directly impact production and boost economic growth by increasing spending power between low-income and unemployed households, so the better solution for South Africa is for the SRD grant to transition to Universal Basic Income to support the needy people of South Africa.
  • Universal Basic Income has also reduced the social reputation of receiving social benefits from welfare and promotes a sense of inclusion and dignity among recipients.

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