Cape Argus

Social grants increase ‘below inflation levels’

- ZINTLE MAHLATI zintle.mahlati@inl.co.za

THE non-government­al organisati­on sector has responded with mixed reaction to Finance Minister Tito Mboweni’s Budget speech.

There are growing concerns about the Treasury’s decision to increase social grants at below inflation levels. Concerns have also been raised about spending on education.

Mboweni gave his annual Budget speech this week.

The minister announced a between R10 and R30 increase for social grants – which included child and elderly care grants.

Treasury’s Budget outline shows that social grants spending will be decreased by 2.2% over the medium-term expenditur­e framework. This is while the number of beneficiar­ies is expected to increase by 300000.

On spending on education, Mboweni announced an increase in spending from R387.2 billion in the 2020/21 financial year to R416bn in 2023/24.

Equal Education (EE) said Wednesday’s Budget represente­d a continued underfundi­ng in education by the government. The organisati­on noted the slight increase in spending allocated for education but noted that this would signify a decrease in the coming years when inflation was taken into account.

“It is learners, teachers and parents/ guardians who will feel the consequenc­es of these decisions in schools when already stretched classrooms fill up. There are too few teachers, and learners go without meals because of underfundi­ng.

“Yesterday’s budget represents a continuati­on of concerning trends of underspend­ing on basic education. Since 2016/17, funding for education as a percentage of the total budget has decreased from almost 19% to around 15%,” EE said in a statement.

Aidc, an NGO collective umbrella group representi­ng over 10 NGOs, said Treasury had implemente­d an austerity budget despite denials by Mboweni.

The organisati­on said spending did not account for inflation and as such will do very little to uplift the marginalis­ed who depend on social grants.

The #PaySocialG­rants movement, a civil society movement, said the below-inflation increase in social grants will only mean beneficiar­ies will become poorer.

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TITO Mboweni

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