Modellering van fiskale roetes tot ‘n basiese inkomste

The fact sheet presents modeling by the Institute for Economic Justice and Applied Development Research Solutions showing that a basic income grant in South Africa is fiscally sustainable and would positively impact GDP growth, poverty, and unemployment. It outlines three ambition levels (low, medium, and high) for the grant's value and coverage, funded through a combination of wealth taxes, a social security tax, and VAT revenue generated by increased consumption. The document argues that the net cost of such a program is significantly lower than the gross cost due to the economic multiplier effect in poor communities.

• Modeling of three different pathways (low, medium, and high ambition) for a basic income grant (BIG) between 2023 and 2030 indicates that the policy is both sustainable and affordable.
• The implementation of a BIG is projected to reduce the poverty rate by up to two-thirds over eight years and increase GDP growth from a 2.2% baseline to between 2.8% and 3.5% by 2030.
• A basic income grant based on the 2022 food poverty line (FPL) of R624 per month for adults aged 18 to 59 would have a gross annual cost of R255 billion, though actual costs may be lower (R153 billion to R204 billion) if only 60% to 80% of eligible people apply.
• The net cost of a UBIG could be as low as 50% of the gross cost due to the 'multiplier effect' where spending in poor communities stimulates economic activity and increases government revenue, specifically through VAT, which recovers approximately 12% of grant spending.
• Proposed funding mechanisms include a social security tax (MSB) that could cover around 25% of the cost, a wealth tax on the richest 1% that could raise up to R143 billion annually, and a 25% VAT rate on luxury goods generating R9 billion per year.
• Other potential revenue sources include a financial transactions tax (BFT) at 0.1% (R41 billion annually), a resource rent tax (BHH) (R38 billion annually), and reducing government subsidies on pension and medical funds (estimated at R133 billion).

APA

Institute for Economic Justice (2023). Modellering van fiskale roetes tot ‘n basiese inkomste. https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-8-factsheet-Afrikaans.pdf

Chicago

Institute for Economic Justice. Modellering van fiskale roetes tot ‘n basiese inkomste. 2023. https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-8-factsheet-Afrikaans.pdf.

Wikipedia

{{cite report |author=Institute for Economic Justice |title=Modellering van fiskale roetes tot ‘n basiese inkomste |date=November 2023 |url=https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-8-factsheet-Afrikaans.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{instituteforeconomicjustice2023modellering, author = {{Institute for Economic Justice}}, title = {{Modellering van fiskale roetes tot ‘n basiese inkomste}}, institution = {Institute for Economic Justice}, year = {2023}, month = nov, url = {https://iej.org.za/wp-content/uploads/2024/02/IEJ-UBIG-8-factsheet-Afrikaans.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }