Get the latest facts and updates regarding the Pros and Cons of Universal Basic Income Over SRD Grants: Complete Analysis. The UBI is granted to every eligible citizen of South Africa so that they can live above the poverty line and afford basic livelihood needs. This article will provide a complete analysis of Universal Basic Income.
Pros of Universal Basic Income Over SRD Grant
Recently, a transformative move was driven by the ANC (African National Congress) to replace the SRD grant with UBI. The SRD grant was initiated as a temporary relief measure for the Covid-19 pandemic. Currently, the grant is set at R370 per month for individuals who earn low income. It provides financial aid to people with less income. However, for its limited scope, the grant faced criticism, in response to which ANC proposed the transition of SRD with UBI.
Various significant benefits have been yielded with the introduction of UBI. It minimizes inequality and poverty by granting regular income to all eligible candidates. It stimulates economic activity through direct cash transfers. Moreover, it encourages entrepreneurship and simplifies social welfare programs by eliminating complex eligibility norms.
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Cons of Universal Basic Income Over SRD Grants
Various countries have been conducting experiments on measures of emergency income support to cope with the pandemic. At that time, the government of South Africa introduced the SRD Grant, which grants old-age pensions and child support grants. However, the ANC is likely to substitute the SRD grant with UBI.
Along with the pros of UBI, its implementation also yielded various challenges, some of which are described below:
- Risk of Inflation – If the UBI is not regulated appropriately, then the introduction of UBI at a massive scale will lead to inflation. Matching the supply side with increased consumer demand might be critical, which eventually enhances the economic inflation rate.
- Funding – The significant resources required for UBI funding. The ANC has to explore various consumer spending-driven mechanisms such as wealth tax, VAT revenue, or social security tax.
- Evaluation of UBI – For the needed adjustments and impact assessment, it is necessary to evaluate the UBI. The monitoring of UBI at the mass level might be critical.
Apart from this, it might be possible that people would become lazy due to the free supply of income. It might be possible that individuals would use this money for purposes like drugs, tobacco, alcohol, and others rather than food, health, education, and other essential requirements. Moreover, UBI might increase the unemployment rate due to the dependency on the government for survival.
Eligibility for Universal Basic Income
UBI is provided to residents of South Africa on a regular time period. However, no complex eligibility norm is required for UBI approval. The permanent residents of South Africa who are between 18 and 59 years old are eligible for monthly payments.
The UBI was introduced to ensure everyone could get enough financial aid for survival. It is intended to be available for all of the permanent residents of SA. It ensures that no one falls through the cracks.
How to Claim Universal Basic Income
UBI is intended to simplify the complexity of the social welfare system. To ensure the registration of all eligible individuals, there is an application process. The claimants can register themselves through digital platforms.
To claim the UBI, applicants must submit certain significant documents, such as residential proof, documents of identification, and bank details. The payment will be made directly into the bank account, so claimants must provide accurate details.
The individuals who can not access the online platforms can claim the application in person. The claimants can contact the SASSA personally and can claim the grant. Moreover, there is an anticipation of outreach programs for remote communities and families living in marginalized areas to make them aware of UBI access.
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All We Know
The introduction of UBI 2025 is a huge step for the South African Government. It aims to provide financial aid to all the citizens of South Africa without any complex eligibility criteria, unlike the SRD grant, which requires evidence of financial distress. However, it has certain challenges, too, such as managing funding disbursement and the investment in technologies required for transparent operations.
However, it offers hope for positive outcomes by overcoming the challenges. For detailed information, visitors are requested to keep an eye on the official SASSA web portal. Moreover, for UBI-related articles, frequently pay a visit to this web page.
