Finance Minister Tito Mboweni has announced a revenue shortfall of R213-billion which is the largest on record. Tax revenue collection has been below forecasts for some time compounded by the fact that the country is in a deep recession.
South Africa is also dealing with a 32.5 unemployment rate partly due to the coronavirus pandemic.
However, on Wednesday, Minister Mboweni had good news for the millions of social grant beneficiaries. The social grants have been increased by below inflation rates of between 1% and 3.4% from the 1st of April.
The slight increase in social grants is coupled with the ending of the social relief of coronavirus pandemic distress grant in the same month.
“R30 increase for old age; R30 increase in the war veterans grant; a R10 in child support grant and R10 increase for the foster care grant.”
• R30 increase for the old age, disability and care dependency grants to R1890.
• R30 increase in the war veterans grant to R1910.
• R10 increase in the child support grant to R460.
• R10 increase for the foster care grant to R1050. #RSABudget2021
— South African Government (@GovernmentZA) February 24, 2021
VIDEO, Budget 2021 delivered by Minister of Finance Tito Mboweni