SRD Grant Extension Will Cost R34 Billion


Please share this article

Advertisement


Social grants prevent millions of vulnerable people from falling into extreme poverty. However, many have questioned how government will fund increasing its spending on the social wage amid looming budget cuts. 


Advertisement i


Last week, Finance Minister Enoch Godongwana announced a twelve-month extension for the Social Relief of Distress (SRD) grant. This extension is set to cost R34 billion.

The news of the grant's extension came as a surprise to many, considering that the minister had previously warned about rising debt levels, which were exerting pressure on government services, leading them to be overshadowed by debt servicing costs. 

Consequently, the government is compelled to reduce its spending.

In the current fiscal year, there has already been a downward revision of spending by R21 billion, and additional reductions of R64 billion in 2024/25 and R69 billion in 2025/26 are proposed.

Godongwana stressed the need for spending reductions and "reprioritization," emphasising that "these decisions are not made lightly; they are made with a focus on the short- and long-term sustainability of public finances and the promotion of balanced and inclusive growth."

Spending on Grants

The minister also revealed that the government is in the process of finalising a comprehensive review of social grants.

Over the 2024 medium-term expenditure framework (MTEF) period, 61% of consolidated non-interest spending is allocated to the social wage, encompassing public expenditure on health, education, housing, social protection, transport, employment, and local amenities. 

A total of R945.9 billion is designated for social protection transfers, covering grants such as the old age grant, the child support grant, the disability grant, and the COVID-19 social relief of distress grant.

Impact of Grants

Sifiso Buthelezi, Chairperson of the Standing Committee on Appropriations, dismissed the notion that government spending on social grants is wasteful. He explained that the money provided to grant beneficiaries is reinvested directly back into the economy.

Buthelezi emphasized:

Let's demystify this idea of spending on grants because it's often perceived as money going to waste. You must consider that when our people receive these grants, they spend them, which subsequently boosts the economy.

He added that the extension of the grant, costing just under R40 billion, not only benefits recipients but also bolsters the entire economy.

The SRD grant, commonly known as the R350 grant, serves as the sole financial support for over 9 million unemployed individuals in South Africa. Calls for making the grant permanent and increasing its value has increased in recent months as the current amount falls below the food poverty line.

The future of the grant remains uncertain, with fiscal constraints posing a significant challenge. South African President Cyril Ramaphosa underscored the positive impact of the SRD grant, as it offers crucial support to the unemployed, preventing millions from falling into extreme poverty.

Suggested Article:

r350 appeals sassa

If you applied for the R350 grant for March 2024 and were rejected, you were given an opportunity to appeal the decision made by Sassa. If you submitted a Sassa SRD appeal, you can track your Sassa status in a few steps.






Online Shopping Links

Loot - Takealot - Temu - Amazon - Shein





Advertisement


WhatsApp Channel

Sponsored Ad

Advertisement

Advertisement

Google News

Post-Matric Options

 

We helped you with past papers for your matric exams, so hopefully you are happy with your Matric results. So now you are faced with a lot of post-matric options that can shape your future paths. You might want to study law, teaching, or nursing. Of course studying is expensive so we have helpful advice about student loans, NSFAS bursaries, Fundi loans, ISFAP, and lots of other funding options.

These options range from pursuing higher education at universities , TVET Colleges or  private colleges, finding student accommodation, entering vocational training programs (like Learnerships and internships), joining the workforce, or even starting your own business. There are so many choices but we are here to help.

Advertisement


Latest SASSA articles

The R370 grant is aimed at assisting unemployed adults living in South Africa. Here's the R370 grant eligibility criteria.. 

Knowing when you social grant will be paid is extremely helpful as it allows for planning. Here's a guide on how to find you Sassa grant payment dates. 

Where to Study


Advertisement m


Other Articles

South Africa’s youth unemployment rate stands at an alarming 44.6% for individuals aged 15-34. This sobering statistic reflects challenges such as limited work experience, educational gaps and economic hurdles. Transitioning from education to employment often feels like an uphill battle for many young people, leaving them stuck without work, or the opportunity to receive further training.
 


Advertisement


Latest SASSA articles

The R370 grant is aimed at assisting unemployed adults living in South Africa. Here's the R370 grant eligibility criteria.. 

Knowing when you social grant will be paid is extremely helpful as it allows for planning. Here's a guide on how to find you Sassa grant payment dates. 


Advertisement


Careers Advice

Hey there, tech enthusiasts and future IT stars! Remember, your CV is your golden ticket to landing the role of your dreams in the ever-evolving IT industry.


Advertisement i