IMF estimates of requirements to finance extension of the SRD grants in SA

The IMF suggests in the 2023 Article IV for South Africa that maintaining the Social Relief Distress (SRD) grant would require either:

  • A 6% improvement public sector productivity (requiring real wages to fall to match government labour productivity) and improved financial management of state owned enterprises
  • A VAT increase of 4.5 percentage points
  • A 2 percentage points increase in the company tax rate
  • A 2.6 percentage point increase in marginal personal income tax rates for each income bracket.

Codera Blog Newsletter

Sign up to receive a weekly summary of our blog posts