An amount of R66bn has been allocated to social development in the budget, R36bn of which is to fund the extended R350 social relief of distress (SRD) grant until March 2024.
Image: Sino Majangaza
Finance minister Enoch Godongwana made the announcement on Wednesday during his 2023/24 budget speech.
He said, over the medium-term, more than 60% of non-interest expenditure goes to the social wage, while spending on buildings and other fixed structures such as roads and dams will increase from R62bn in the current year to R104.2bn in 2025/26.
“We are increasing allocations to key front-line departments above existing baselines, moving towards a change in the composition of spending from consumption to investment, maintaining a large social security safety net, while striving for sustainable levels of debt. This is not an austerity budget. It is a budget that makes tough trade-offs in the interests of the country’s short and long-term prosperity,” he said.
Godongwana said R30bn will be used for inflation-linked increases for other social grants.
From April 1, the old age and disability grants will increase by R90 and a further R10 on October 1, making the total grant R2,090.
The child support grant rises from R480 to R510 on October 1, while the foster care grant increases from R1,070 to R1,130 over the same period.
R23bn and R22bn will be allocated to health and basic education respectively, to cover the shortfall in compensation budgets and to improve services.
R8bn is allocated for basic services through the local government equitable share.
Sassa warns about scam
The South African Social Security Agency (Sassa) has warned beneficiaries of fake news making the rounds online.
A scam claimed a R700 grant was being introduced and applications were open.
It said more than 675,000 citizens aged between 18 to 65 would receive the grant to support citizens.
“Sassa does not offer such a grant. We urge our beneficiaries to protect their personal details. Do not share your ID number with strangers,” warned Sassa.
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