Pre-Budget Godongwana urged to prioritise soaring costs

With the cost of living increasing, many people have had to rely on donations from organisations. l FILE

With the cost of living increasing, many people have had to rely on donations from organisations. l FILE

Published Feb 19, 2023

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With only a few days left before the Minister of Finance, Enoch Godongwana, is due to table the Budget, pressure is mounting on the government to implement measures to end poverty.

The cost of living has soared in recent months, the inflation rate has also gone up and citizens face increased hardship.

From an increase of the Social Distress Relief (SDR) grant to between R750 and R1 000, raising the child social grants to around R633 per month, to implementing funding relief for those looking after the vulnerable, several organisations have called on government to take the food crisis seriously.

Godongwana has also been urged to ensure that the poor were cushioned from the hard effects of rising food costs.

Organisations also called for the establishment of a food policy council to end hunger.

"I would like to see (Minister) Godongwana focus on the food system beyond the short-term crisis," said CEO of Western Cape Economic Development Partner Andrew Boraine.

He added that in the short-term, the country needed to gear up to support emergency food relief in poor and vulnerable areas through co-ordinated efforts between civil society, government, business and donors.

According to Boraine, the Western Cape Food Forum successfully implemented the approach in response to the food crisis during lockdown in 2020.

He would also like to see in the Budget speech an announcement of a long-term support for what he regarded as one of the most successful public employment initiatives, namely, the Presidential Employment Stimulus Social Employment Fund (SEF).

The initiative is delivered through a partnership between the Industrial Development Corporation and a national network of civil society organisations and grassroots structures.

Among other issues, the forum focuses on work programmes for food security in both rural and urban areas. At the moment, funding for the forum only goes up until March next year.

Managing director of FoodForward SA, Andy du Plessis, would like to see "concrete plans" on how the government would ensure that household food security was going to be addressed, given the current cost of living crisis.

"Government should support FoodForward SA’s call for a food donations policy which could immediately unlock five million tons of good quality, edible surplus food so that we can provide nutritious food to vulnerable households.

"We would also like to see how planned infrastructure programmes will translate into permanent jobs and unemployment reduction targets put in place," said Du Plessis.

He also called for meaningful measures to prevent child malnutrition and deaths due to chronic hunger.

The latest Household Affordability Index, which tracks food price data in Johannesburg, KwaZulu Natal, Western Cape and Northern Cape showed that the average cost of the food basket was R4 917.42, an increase of 1.3 % from December to January.

On a year-on-year basis, the average cost of the food basket increased by R516.40 (11,7%).

Programme director of Pietermaritzburg Economic Justice & Dignity, Mervyn Abrahams said he would like to see the country moving towards a developmental trajectory that would ensure proper nutrition for children.

"I would like to see a child support grant set at the poverty line of R663, instead of the current R480 to ensure that children escape the poverty trap," he said.

The founder of a foster home in Khayelitsha made an impassioned plea for funding relief for those who looked after the vulnerable.

Evelyn Makasi's Abaphumeleli Foster home had been taking in children since 2004.

"I depend on the foster grants which cover the costs of school fees, transport, clothing and their personal needs. Non-government organisations also donate vegetables. But that is not enough as the staff of volunteers don’t receive salaries,“ Makasi.

“Unlike early educare centres, we are not funded by the government. It's time to recognise and value our efforts and receive financial support.”

Godongwana will also be under pressure to address issues around managing the electricity crisis, the threat of a public sector wage strike and unemployment.

Economist Lungele Mashele said he expected the minister to bail out the ailing power entity.

“I expect him to say the government is going to take over a significant portion of Eskom's debt. I expect it to be two-thirds of its debt,” she said.

“That will free Eskom to recover its financial position and to do maintenance. It will pave the way for the government to bring an end to load shedding, as it is the most important thing. But, at the end of the day, the devil is in the detail,” Mashele added.

Weekend Argus

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