Stimulus package – a step in the right direction, but raises many questions
22 April 2020
The economic stimulus package that President Ramaphosa announced is a step in the right direction.
There are, however, certain aspects of the stimulus package that require further clarification and the FF Plus is of the opinion that the payment of the newly allocated social grants must be handled very carefully seeing as people can very quickly become dependent on these grants and that will make it very difficult to take them away in the future.
It is important not to facilitate dependence on the government, but rather job creation and business development.
There is a strong focus on the poor and vulnerable in the country, but it is important to take into consideration that the definition of who the vulnerable in South Africa are has changed. People who were not deemed vulnerable before the period of lockdown and were part of the middle-income group who provided employment have now become vulnerable.