The Social Relief of Distress (SRD) grant was introduced in May 2020 as a temporary measure to respond to the needs of the most vulnerable. The grant was soon found to be effective and after its implementation.
Fast-forward to the 2022 Medium Term Budget speech, Finance Minister Enoch Godongwana has confirmed that the grant will be extended.
The medium-term changes to spending plans are driven mainly by the government's decision to extend the special Covid-19 SRD grant by one year, until 31 March 2024.
This comes after Godongwana outlined a number of global and local risks such as rising inflation, tightening financial conditions and the ongoing effect of Covid-19, including the more stringent lockdowns in China and their impact on global demand and supply chains.
It is for this reason that the budget over the next three years will be focused on restoring service delivery and laying the foundation for higher growth.
Godongwana has reiterated that any permanent extension or replacement of the SRD grant will require permanent increases in revenue, reductions in spending elsewhere, or a combination of the two.
It has been reported that discussions around the future of the SRD grant being made permanent for qualifying individuals are on-going.
According to the National Treasury, the Covid-19 SRD grant is expected to grow by at least 8.8% every year and its financial implications could reach some R64.9 billion in the 2030/31 financial year.
As recipients of the grant receive R350 per month, lobby groups continue to push for SRD grant to be raised to R624, which is South Africa’s food poverty line.
