The COVID-19 pandemic has presented an array of challenges for South Africa, posing further risks to poverty, unemployment, and inequality.
Delivering his maiden Budget Speech in Cape Town on Wednesday, Finance Minister Enoch Godongwana says interventions that the Budget 2022 put forward aim to ease the burden on the poorest of the poor, who are adversely affected by the effects of the pandemic.
Government’s total consolidated government spending will amount to R6.62 trillion over the next three years, with the social wage taking 59.4 per cent of total non-interest spending over this period.
Nearly half of South Africa’s citizens receive at least one social grant from the state.
Where is the money coming from?
The bulk of governments sources of income (79.2%) for Budget 2022 will be derived from taxes, amounting to R1 598.4 billion.
Borrowing, which constitutes 19.2% of the budget, amounts to R386.4 billion.
Constituting 1.6% of the budget, funds will also be generated from non-tax revenue, which amounts to R33.3 billion.
How will the social grants be divided?
During his speech, Godongwana said the Department of Social Development will receive the largest allocation of R58.6 billion over the medium term.
A total of 18.6 million people will be recipients of social grant support between April 2022 and March 2023.
A new extended child support grant for double orphans will be introduced in a bid to encourage the care of orphans within families rather than foster care
The old age, war veterans, disability and care dependency grants, will see an increase of R90 in April and a further R10 in October; while the foster care and child support grants will increase by R20 once off in April.
Social relief of distress grant
Godongwana says R44 billion will be allocated to the social relief of distress (SRD) grant.
During his State of the Nation Address earlier this month, President Cyril Ramaphosa announced an extension to the SRD grant for an additional 12 months.
The president’s announcement came amid mounting calls by various stakeholders to continue with the grant which serves as a temporary relief measure to those who have suffered under the COVID-19 pandemic.
Godongwana adds that the country now pays grants to more than 46% of the population.
The grant increases are indicated in the graphic below:
