provide a brief explanation on how the South African government provide support to the people in poverty relief Grant
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Grant payments redistribute income to poor households and have contributed to a reduction in poverty in South Africa. The social grant net is the government's biggest poverty alleviation and redistribution intervention. There are others, such as government housing provision and free water allocation.
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Grant payments redistribute income to poor households and have contributed to a reduction in poverty in South Africa.
The social grant net is the government’s biggest poverty alleviation and redistribution intervention. There are others, such as government housing provision and free water allocation. But payments in grants outstrip these by a large margin. The main weakness is the fact that the grant system was expanded during a period of rapid economic growth. In 2002 South Africa only had some 4,2 million beneficiaries of social grants.
This grew rapidly to about 17 million beneficiaries as the grants were expanded to include older children.
Because South Africa was going through a period of rapid economic growth at that time it could easily afford new spending initiatives and projects.
But since 2008 the country has suffered a period of low economic growth. And there isn’t any expectation that the situation is likely to improve in the foreseeable future. As a result the system has become unaffordable.
An additional concern is that the Minister of Social Development has suggested there may be an extension of child support grants. This is simply unaffordable and will push South Africa closer to the fiscal cliff – the point at which its spending outstrips its revenues and it can’t meet its debt obligations.
The social grant net is the government’s biggest poverty alleviation and redistribution intervention. There are others, such as government housing provision and free water allocation. But payments in grants outstrip these by a large margin. The main weakness is the fact that the grant system was expanded during a period of rapid economic growth. In 2002 South Africa only had some 4,2 million beneficiaries of social grants.
This grew rapidly to about 17 million beneficiaries as the grants were expanded to include older children.
Because South Africa was going through a period of rapid economic growth at that time it could easily afford new spending initiatives and projects.
But since 2008 the country has suffered a period of low economic growth. And there isn’t any expectation that the situation is likely to improve in the foreseeable future. As a result the system has become unaffordable.
An additional concern is that the Minister of Social Development has suggested there may be an extension of child support grants. This is simply unaffordable and will push South Africa closer to the fiscal cliff – the point at which its spending outstrips its revenues and it can’t meet its debt obligations.
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