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Industry experts say although a basic income grant will be much welcomed by struggling citizens, the fiscus does not have the capacity for it.
Last week, President Cyril Ramaphosa said government is considering introducing a basic income grant in the wake of unrest and have asked experts to come with funding solutions.
However, Economists warn that a basic income grant if introduced will be very difficult to implement.
It is estimated that 12 million people could take up the basic income grant if introduced.
Calls on government to provide a universal basic income grant of R1 268: Isobel Frye
Government will have to find R50 billion in extra income and 4% more money from the tax base.
This would require a more than 2% increase in the VAT rate, and government will have to also cut back some budget programs.