The government has confirmed that a total of R66 billion will be allocated to the Department of Social Development over the medium term, R36 billion of that is intended to fund the confirmed extension of the Social Relief Distress grant.
During his 2023 speech on Wednesday Finance Minister, Enoch Godongwana said although the SRD grant will continue, the government is considering options to provide alternative social protection to those receiving it.
In addition to this, No incremental changes to the grant were announced, meaning that will remain the same throughout its extension period.
Furthermore, the Minister stated that the 350 grant is anticipated to increase 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 the 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.
Meanwhile, there have been growing calls for the grant to be converted to a basic income, increased and continued indefinitely by human rights organisations that say the monthly payout is below the poverty line.
President Cyril Ramaphosa responded by saying that efforts are being made to create "targeted basic income support" in South Africa, which is distinct from the temporary Social Relief Distress (SRD) grant, during his 2023 State Of The Nation Address.
The 350 grant was introduced in May 2020 as a short-term solution to address the needs of those who were most at risk and were impacted by the lockdown measures brought on by Covid-19. Since then, it has been extended numerous times.
