Godongwana pleases ANC with people-friendly announcements

In a clear bid to make this an appropriate Budget for the party in an election year, R3.7-trillion will be spent over three years on public servants’ salaries. Social grants will increase slightly too. By

About R58-billion of the spending reductions announced in the 2023 Medium-term Budget Policy Statement have been reversed to increase funding to pay the salaries of teachers, nurses, doctors, police and other public servants.

Unlike personal income tax brackets, which have not been adjusted for inflation, all the permanent social grants have been increased.

This means the social relief of distress (SRD) grant of R350 will not be increased immediately. However, Finance Minister Enoch Godongwana says work is under way to improve the Covid-19 SRD grant by April.

The National Treasury will work with the Department of Social Development and these “improvements” will be within the current fiscal framework.

For the extension of the grant beyond March 2025, the social security policy reforms, together with the funding source, will be finalised.

Spending on social grants, excluding the

SRD grant, will increase from R217-billion in 2023/24 to R259-billion in 2026/27. Grant beneficiaries (excluding SRD grant beneficiaries) are projected to increase from 18.8 million in the current financial year to 19.7 million in 2026/27.

To keep pace with inflation and increase access, permanent social grants will increase as follows:

Old age, war veterans, disability and care dependency grants will increase by R100 to R2,185. This increase will be split into R90 effective from April, and R10 effective from October;

Foster care grants will increase by R50 to R1,180; and

Child support grants will increase by R20 to R530.

“We are sensitive to the increase in the cost of living for the nearly 19 million South Africans who rely on these grants to make ends meet. In this regard, we have done as much as the fiscal envelope allows,” Godongwana said.