Finance Minister Enoch Godongwana has confirmed that the Medium-Term Policy Statement (MTBPS) will be tabled in Parliament on Wednesday, 01 November 2023 at 14h00.
The Medium-Term Budget Policy Statement sets government policy goals and priorities, forecasts macro-economy trajectory, and projects the fiscal framework over the next three years by outlining spending and revenue estimates (including the South African Social Security Agency), amongst others.
An engagement session on the MTBSP logistics will be held on 20 September 2023.
How The SRD Grant Came About
The Social Relief of Distress (SRD) grant was initially introduced in 2020, in response to the detrimental changes to livelihoods that occurred as a result of the unexpected Covid-19 pandemic.
Due to the harsh lockdowns that were put into place in order to curve the spread of the virus, many South African citizens were suddenly left without jobs and essentially a source of income. The grant was then created, on a temporary basis, to provide some form of income to this group of vulnerable individuals and families.
However, the Social Relief of Distress (SRD) grant has been extended on numerous occasions, with many calls arising for an increase in the amount distributed as well as to make the grant permanent.
At the moment, the SRD's monetary value is at R350 per month, but there have need ample discussions about increasing the income threshold to R624 which is where the food poverty line currently rests.
Calls To Increase The Grant Value
As South Africa grapples with high unemployment rates and economic instability, calls for an increase in Sassa grants have gained momentum.
While social grants that are administered by the South African Social Security Agency (Sassa) play a crucial role in ensuring that impoverished South Africans can avoid absolute poverty, experts believe that the country’s social security is not functioning effectively.
There have been calls for the government to increase its investment on social security to keep up with unemployment, according to Mervyn Abrahams who is the Programme Coordinator Pietermaritzburg Economic Justice and Dignity.
Because we have such high unemployment levels, our Social Security net needs to prevent people from going into abject poverty and needs to catch households where children might possibly die because of malnutrition.
Abrahams goes on to say that although some economists may not agree, additional government investment into South Africa’s social grant system will drive further demand into the country’s economy.
South Africa currently has over 18 million people who depend on some form of Sassa social grant. These include social grants that are paid out to the elderly, children and people living with a disability among others.
During his 2023/24 Budget speech in February, Finance Minister Enoch Godongwana announced that there would be a 5% increase on all permanent social grants throughout the course of the next financial year.
Godongwana explained that expenditure on social grants would increase from R233 billion in 2022/23 to R248.4 billion in 2025/26 due to increases in the number of recipients and the value of the grants.
Beneficiaries might also hear about the fate of the SRD grant as it should be coming to an end in 2024 but many are calling for it to continue.
Anticipating Increased Beneficiaries and Spending
Minister Godongwana highlighted that the expansion of the grant program is necessary due to the projected rise in beneficiaries.
The government anticipates that the number of grant beneficiaries will increase from 18.6 million in March 2023 to 19.6 million by March 2026. This projected growth will necessitate an additional expenditure of over R10 billion on grants in 2025 alone.
The calls for increased investment in social grants reflect a collective effort to provide a safety net for vulnerable populations and stimulate economic recovery.
