Government has committed to stepping up efforts to improve the lives of the poor through increased expenditure on social support grants.
Tabling his Budget Speech in Parliament on Wednesday, Finance Minister Malusi Gigaba announced increased on social grants at a higher rate.
These are meant to compensate the poor following the proposed increase in value added tax (VAT) from 14% to 15%.
Government is set to spend over R528-billion on social grants over the next three years, with R259.4 billion allocated for the 2018/19 financial year.
- The following will apply effective 1 April 2018:
– Old age, disability and care dependency grants will increase from R1600 to R1690, and by a further R10 to R1700 on 1st October.
– Child support grants will increase from R380 to R400, and R410 in October.
– War veterans grants will increase from R1620 to R1715
– Foerster care grants will receive a R40 increase from R920 to R960.
Gigaba says the above mentioned adjustments have resulted in an increase in social protection spending by 7.9% per year, a figure that’s much above inflation.
The finance minister also reiterated President Cyril Ramaphosa’s commitment towards ensuring that grants continue to be paid without disruption, as outlined during his State of the Nation Address (SONA) last week.
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