Budget 2024: Government announces social grant increases to cover inflation
|Published
The government announced increases in its national Budget on Wednesday, to the social grants to keep pace with inflation.
Finance Minister Enoch Godongwana said in Parliament that the old age veterans, disability and care dependency grants were increased by R100.
This amount would be divided into R90, effective from April, and R10 effective October.
The foster care grant was increased by R50. The child support grant was increased by R20.
“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,” Godongwana said.
“In this regard, we have done as much as the fiscal envelope allows.”
He said work was under way to improve the Covid-19 Social Relief of Distress grant by April this year.
National Treasury would work with the Department of Social Development to ensure that improvements in this grant were captured in the final regulations. The improvements would 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,” National Treasury said yesterday.
The Budget also made provision for job creation initiatives.
Some R61.4 billion was allocated for employment programmes over the next three years.
About R7.4bn has been identified for the Presidential Employment Initiative.
The government was also prioritising fighting crime and corruption with a focus on enhancing law enforcement agencies. A total of R765bn was allocated to the peace and security cluster. In the coming financial year, 10,000 new police recruits would be trained.
Godongwana said 60% of the government’s non-interest spending was being directed to the social wage, such as on education, health and safety.
Over the next three years the government had allocated R107bn for the old age grant, R89bn for social security grants, R85.8bn for the child security grant, R73.4bn for other grants, R22bn for provincial social development and R10.1bn for policy oversight and grant administration.
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