In a move to ease the financial burden on vulnerable households, Finance Minister Enoch Godongwana announced increases to social grants in line with the inflation rate, on Wednesday.
The R2.24 trillion expenditure Budget tabled by Godongwana will see R1.35 trillion being spent on social services.
The Department of Social Development will get a R378.5 billion budget allocation. Of that, R81.9bn will go towards improving child support grants and R92.4bn to social security funds.
“R66bn is allocated to social development over the medium term, with R36bn to fund the extension of the Covid-19 social relief of distress grant until 31 March 2024,” Godongwana said.
From April 1, the old-age pension will increase from R1 985 to R2 085 a month, and the over 75 years old and war veterans will receive R2 105, up from R2 005.
Child support grants will also increase, from R480 to R505 a month. Care dependency and disability grants will rise from R1 985 to R2 085 and foster care grants from R1 070 to R1 125.
Other good news is that the Covid-19 social relief of distress (SRD) grant has been extended by another year, until March 31, 2024, even though it has remained at R350.
A total of R36bn has been allocated to the SRD grant and is expected to benefit millions of people reeling from a loss of income since the pandemic and unable to find jobs.
"The National Treasury, together with partner departments, is reviewing options to provide appropriate social protection measures for the working-age population that can replace or complement the current Covid-19 social relief of distress grant.
“Any permanent increase in expenditure, such as a new social grant, will need to be matched by permanent revenue increases or spending reductions elsewhere,” read the Treasury’s document on the estimates of national expenditure for the current fiscal year.
The state also projected that by March 2026, at least 29 million people would be assisted through social grants.
Weekend Argus