Government Lacks Funds To Increase SRD Grant


The Social Relief of Distress Grant received an extension in the recent Medium Term budget speech, however, the government has announced that it has run into some issues with making the grant permanent and increasing its value. 




Recently, President Cyril Ramaphosa joined the National Council of Provinces in one of its sittings in the Ugu districts, bring Parliament to the local residents. 

Ramaphosa has announced news of the government not having enough money to increase the R350 Social Relief of Distress Grant (SRD Grant).

Members of the community that were present in this sitting, raised a number of concerns during the session, including the grant not being enough to sustain them.

While taking note of what the community was pointing out in this session, Ramaphosa stated:

We will continue with the grant, even in the coming year.

Finance Minister Enoch Godongwana announced the extension of the grant during the Medium Term Budget Policy Statement. This means, recipients of the SRD grant will continue to receive R350 per month.

However, lobby groups such as Awethu Amandla, have been at the forefront, advocating for the increase of the SRD grant to at the very least the food poverty line, which is currently R663 per person per month. 

This group also highlighted that the government needs to implement a permanent social assistance for those aged 18 to 59 with little to no income, and also improve on its administration issues.

According to the National Treasury, the SRD grant is expected to grow by at least 8.8% every year and its financial implications could reach some R64.9 billion in the 2030/31 financial year.

In light of this, Godongwana said the indefinite continuation of the grant will have a serious impact on the stability of the public purse.

In this speech, the Minister reiterated that any permanent extension or replacement of the SRD grant will require permanent increases in revenue, reductions in spending elsewhere, or a combination of the two.





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