for example income grants reduce the need for workers to send remittances to their families thus increasing the wage available for their own consumption or for skills upgrading this in turn could increase productivity through better health and human resources outcomes higher productivity will increase overall output and labour demand if a basic income grant is successful in boosting longterm growth the fiscal burden of the transfer would be reduced the issue of whether a basic income grant can serve as a key intervention for poverty reduction has been debated in the case of south africa according to them taxpayers will oppose financing universal programmes