A survey by the Institute of Race Relations (IRR) has found that more people are receiving social grants.
The latest South Africa Survey published this week, reveals that in 2001 there were 12 494 000 people in employment and 3 993 133 people receiving social grants.
In a statement the organization says as the economy slows, the government will find it harder to expand the roll out of grants, or to increase their value.
IRR analyst Gerbrandt van Heerden said: “The numbers are a recipe for social and political chaos. With South Africa formally in recession,the government will find it difficult to afford the cost of its social grants programme. As the economy stagnates,and tax revenue slows, demand for more grants will increase. The government will then have to cut other areas of expenditure in order to meet popular demands for more and higher grants. We predict that this will lead to much higher levels of violent protest action.”
702's Xolani Gwala gives his take on the matter.
Here is the recipe of untold social unrest, just last week I think it was the Finance Minister who says there is obviously a need for Treasury now to revise downward GDP expectations for this year, so the economy is not going anywhere.— Xolani Gwala, 702 Breakfast Show anchor
The biggest problem is that we are not hearing any plans coming from government, the biggest problem is that whether you are talking about the Finance Minister or the President, they are both fighting for their political careers. They absolutely ave no concern about getting this country out of this political situation.— Xolani Gwala, 702 Breakfast Show anchor
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