The COVID-19 Social Relief of Distress (SRD) Grant \u2013 also known as the R350 grant \u2013 is expected to be extended to the end of March 2024.
\nThis as government continues to consider options for a replacement for the grant with no decision taken yet on how the replacement will be financed.
\nFinance Minister Enoch Godongwana announced the extension of the grant during his presentation of the Medium Term Budget Policy Statement in Parliament on Wednesday afternoon.
\n\u201cThe SRD grant was introduced in May 2020 as a temporary measure to respond to the needs of the most vulnerable, who were affected by [COVID-19 induced] lockdown measures. It has been extended several times since then. Discussions on the future of the grant are ongoing and involve very difficult trade-offs and financing decisions,\u201d he said.
\nAs a result of the extension of the SRD grants, other social grants \u2013 such as old age grants and disability grants \u2013 will increase lower than inflation.
\nAccording to 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 \u2013 casting an impact on the sustainability of the public purse.
\nIn light of this estimation, Godongwana said indefinite continuation of the grant will have a serious impact on the stability of the public purse.
\nDespite 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.<\/p>\n
Source: South African Government News Agency<\/p>\n","protected":false},"excerpt":{"rendered":"