Ramaphosa’s office condemns leak of economic advisers’ thumbs-down for basic income grant

President Cyril Ramaphosa’s office says the leak of a confidential presidential economic advisory council (PEAC) report has allowed “selective quotation from the document, often out of context, to support various agendas”.

This is after a report by News24 revealed the president was strongly advised “not to implement a permanent income grant due to the risks it holds for the country and the damage it would do to economic growth and job creation”.

The January 27 article said the council criticised an expert report commissioned by the department of social development which concluded that “a basic income support grant was sustainable for the economy”.

The council warned: “There is a strong basis for arguing that implementation of significantly increased social grant spending would likely weaken the position of poor South Africans as it would erode public services and infrastructure, slow down employment creation and result in a crisis for public finances that would take years to resolve.” 

On Saturday, acting presidency spokesperson Tyrone Seale said the advisory council presented the report to Ramaphosa on January 13.

Seale said the council was established to provide the president with a range of expert perspectives on economic policies.

“All reports by the PEAC remain confidential unless the presidency decides to release the report for broader circulation. The effect of the leak has been to allow for selective quotation from the document, often out of context, to support various agendas,” he said.

“Members of the council hold a range of diverse and nuanced views, which have been presented to the president in various reports and meetings.”

Seale said Ramaphosa valued the “diversity of views and insights that the members of advisory council provide”.

The ANC has been considering a basic income grant after instituting a temporary R350 social relief of distress grant during the Covid-19 pandemic. It is expected to come to an end in March. 

In his January 8 statement as ANC leader, Ramaphosa told throngs of people in Polokwane that some form of income support was necessary.

 “The social relief of distress grant has provided vital support for the unemployed during the pandemic, reaching 9.5-million people and lifting 5-million above the food poverty line,” he said.

“There is a clear need for some form of income support for unemployed and poor South Africans based on clear principles of affordability and sustainability.”

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