‘Subsidies Always Work Better If They Are Targeted’

Finance and Economic Development Minister Mthuli Ncube on Monday said the roller meal subsidy will now be targeted at the beneficiaries for it to achieve the intended goals.

Ncube added that targeting the beneficiaries will eliminate the abuse that has been identified with the subsidy. He said:

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Subsidies always work better if they are targeted, if the person who is vulnerable is identified and receives that subsidy directly.

It cuts off the abuse that has been identified with the subsidy. The second point is we want some kind of voucher system or cash transfer system that will just do that, which is targeted at the beneficiary.

In November last year, the government introduced the subsidy on roller meal after the prices had gone through the roof because of an acute shortage of maize.

The price for a 10kg bag of roller meal was initially set at $50 but was increased to $70 last week.

However, the product remains scarce on the market.

More: The Herald

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