In 2022, the Department of Social Development (DSD) announced that more than R240 billion was allocated to cover social grants of 18 million recipients.
During this fiscal year, this social grant investment accounted for 99.6% of the department's overall budgetary allotment.
For the current financial year, the Social Development’s main priorities is poverty alleviation for vulnerable individuals and it has also received a total budget allocation of R263 billion.
As part of this budget, more than R250 billion consists of direct cash transfer payments that the South African Social Security Agency (Sassa) will pay to social grant recipients.
In a statement, the department’s Minister Lindiwe Zulu announced:
An amount of R253 billion is expected to pay to a projected 27 million eligible grant beneficiaries by March 2024.
Sassa’s budget allocation accounts for an estimated 96.4% of the department’s total budget over the Medium Term Expenditure Framework period which goes directly to the hands of the beneficiaries.
Social Development’s total allocation for the 2023/24 financial years also includes an additional R41 billion that will be directed towards the following:
- The implementation and administration of the CoVID-19 SRD until March 2024 as announced by the Honourable Minister of Finance (R35.7 billion and R400 million, respectively).
- the inflationary increase of the value of grants (R5.8 billion).
For this fiscal year, the government department’s set aside an amount of R7.8 billion for Sassa’s administration of social grants.
Whilst a total of R220 million will be transferred to the National Development Agency (NDA), for this entity to carry out its mandate.
What Is The NDA’S mandate?
According to the National Development Agency Act 108 of 1998, the NDA's mandate is to provide grants to civil society organisations to meet the developmental needs of poor communities and strengthen their institutional capacity.
Its aim is to promote a sustainable partnership between the government and civil society organisations to address poverty and inequality.
