BIG coalition rejects Itula's basic income sums

The Basic Income Grant (BIG) Coalition has poked holes in Independent Patriots for Change (IPC) leader Panduleni Itula’s calculation of how much it would cost the taxpayer to implement the proposed universal grant. Proponents of the BIG have demanded that political parties be clear on how they are going to transform Namibia into a more just society, and whether they would adopt the contentious grant.In a statement, the coalition’s spokesperson Rinaani Musutua rejected Itula&#039;s calculation that the grant will cost the country N$42.4 billion in a year, more than 40% of Namibia&#039;s national budget. "We want to point out that Itula&#039;s calculation is simply wrong," she said, adding that the politician did not take into account the grant&#039;s impact on cost reduction.Rich beneficiaries of the grant will have to pay back their payout through taxes, while BIG is asking for only N$500 per eligible citizen every month, and not N$1 180 as in the IPC leader&#039;s calculations, she said.Beneficiaries of current welfare grants are also excluded from his calculation, which ultimately includes 2.1 million people, to arrive at government costs of N$12.6 billion per month, she elaborated.As the money would stay within the local economy, Musutua deducted a further 15%, which would be recovered from the resulting increase in value-added tax.Significant, but achievementShe said the final total - N$10.7 billion - is significant when the country&#039;s expected gross domestic product for 2025-26 is taken into account, but is still achievable.In addition, the grant will help save other costs, for example by combating education and health costs caused by widespread poverty, she said.She referred to a 2022 report by the Nutrition and Food Security Alliance of Namibia on the cost of famine in the country, noting that stunting alone costs the country N$1.1 billion annually.Musutua further highlighted that the BIG, which was proposed by the Namibian Tax Consortium (Namtax) in 2002, is a way to expand the tax base. "In the discussion about the BIG issue, it is often overlooked that a universal basic income allowance would be a huge stimulus for the local economy," the statement read.Musutua stressed that the campaign for BIG should not be misused for cheap political gain, but calls for a factual and honest debate on the costs and benefits of the grant.PovertyMore than half of the Namibian population suffers from hunger, with 58% food insecure, according to the Food and Agriculture Organisation&#039;s (FAO) recent statement, an increase from the 53% reported in a similar survey in 2014.According to the World Bank, 64% of Namibians cannot afford the basic necessities and live in poverty, while youth unemployment stands at 50%.Children in the Kavango East Region are the poorest, with eight out of 10 living in poverty, followed by minors in Kunene and Zambezi, Musutua pointed out, citing research. She further indicated that Kunene&#039;s children lack seven out of 11 necessary indicators for a healthy life. A total of 93.4% of Khoisan-speaking Namibians live in poverty, she said.So far, the All People&#039;s Party (APP) is the only political formation that has expressed its support for the BIG campaign.– augetto@nmh-hub.com.na

BIG coalition rejects Itula's basic income sums

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Namibian Sun 2025-04-09

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BIG coalition rejects Itula's basic income sums

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Namibian Sun 2025-04-09

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