Budget 2022: Create and Retain Jobs, Expand Income Support, Improve Services

The IEJ calls for the transition of the social relief of distress (SRD) grant into a permanent universal basic income guarantee (Ubig) set at the food poverty line of R624, funded by a R200bn commodity-driven revenue windfall. The organization criticizes the Employment Tax Incentive (ETI) as ineffective and proposes its cancellation to raise R4.9bn for the Ubig. Additionally, the IEJ argues against proposed 3.3% real-term cuts to government programs, citing deteriorating public services in areas such as healthcare and education infrastructure.

• The IEJ recommends transitioning the social relief of distress (SRD) grant from a temporary state of disaster framework to a permanent provision. They propose setting the grant at the food poverty line of R624 and progressively increasing it to the upper bound poverty line of R1,335, arguing that the current flat R350 is insufficient and not linked to objective poverty measures.
• The IEJ argues that a R200bn revenue windfall driven by commodities provides the fiscal space to finance the SRD grant extension and a universal basic income guarantee (Ubig) without cutting public services or hindering job creation. They specifically oppose using Value Added Tax increases as a financing mechanism due to the negative impact on low-income households.
• The Employment Tax Incentive (ETI) is described as ineffective in alleviating youth unemployment, with youth unemployment for those aged 18-24 exceeding 70%. The IEJ proposes cancelling the ETI, which they claim could raise up to R4.9bn in revenue to fund a Ubig.
• The IEJ criticizes the Medium-Term Budget Policy Statement (MTBPS) proposal to cut consolidated non-interest expenditure by 3.3% in real terms annually. They note that real per person expenditure is projected to fall from R26,140 in 2020/21 to R25,117 in 2024/25, contributing to the deterioration of public services, such as a lack of ambulances in the Eastern Cape and poor school infrastructure.
• The document calls for increased funding for sector-specific industrial policy and master plans to localize production inputs, boost manufacturing revenue, and create quality jobs to reverse deindustrialisation.

APA

Justice, I. F. E. (2022). Budget 2022: Create and Retain Jobs, Expand Income Support, Improve Services. Institute for Economic Justice. https://iej.org.za/press-room/in-the-media/budget-2022-create-and-retain-jobs-expand-income-support-improve-services/

Chicago

Justice, Institute for Economic. Budget 2022: Create and Retain Jobs, Expand Income Support, Improve Services. Institute for Economic Justice, 2022. https://iej.org.za/press-room/in-the-media/budget-2022-create-and-retain-jobs-expand-income-support-improve-services/.

Wikipedia

{{cite press release |last1=Justice |first1=Institute for Economic |title=Budget 2022: Create and Retain Jobs, Expand Income Support, Improve Services |publisher=Institute for Economic Justice |date=22 February 2022 |url=https://iej.org.za/press-room/in-the-media/budget-2022-create-and-retain-jobs-expand-income-support-improve-services/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{justice2022budget, author = {Justice, Institute for Economic}, title = {{Budget 2022: Create and Retain Jobs, Expand Income Support, Improve Services}}, publisher = {Institute for Economic Justice}, year = {2022}, month = feb, url = {https://iej.org.za/press-room/in-the-media/budget-2022-create-and-retain-jobs-expand-income-support-improve-services/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }