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R36 Billion Confirmed To Fund Sassa Srd R350 Grant Extension

R36 Billion Confirmed To Fund Sassa Srd R350 Grant Extension

It appears the government recognizes the importance of the 350 grant, as billions are set to be allocated for its extension. In addition, the finance ministry has indicated that it may affect other sectors of the state’s budget.

Over the medium term, a total of R66 billion will be allocated to the Department of Social Development, of which R36 billion is intended to fund the confirmed extension of the Social Relief Distress Grant.

R36 Billion Confirmed To Fund Sassa Srd R350 Grant Extension

Enoch Godongwana, Finance Minister of 2023, said on Wednesday that while the SRD grant will continue, the government is considering alternative social protection options.Additionally, no incremental changes to the grant were announced, so it will remain the same throughout its extension.

Moreover, the Minister stated that the 350 grant is expected to rise by at least 8.8% annually, and the Treasury Department estimates that its financial consequences could total as much as R64.9 billion in the 2030/31 fiscal year, affecting the viability of state funds.

Despite the provision made in this budget, I want to reiterate that any permanent extension or replacement will require permanent increases in revenue, reductions in spending elsewhere, or a combination of the two. 

According to human rights organizations, the monthly payout is below the poverty line, and the grant should be transformed into a basic income and increased and continued indefinitely.

During his 2023 State Of The Nation Address, Cyril Ramaphosa said efforts are being made to provide targeted basic income support in South Africa, which is different from the temporary Social Relief Distress (SRD) grant.

350 grants were introduced in May 2020 as a short-term solution to address the needs of those most impacted by Covid-19’s lockdown measures. Numerous extensions have been made since then. 

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