Decision on Fate of SASSA SRD Grants Set for November 2023.The future of SASSA SRD grants hinges on a critical decision to be made on November 1, 2023, during the Finance Minister’s Medium Term Budget Policy Statement (MTBPS).
Budget Cuts Pose a Threat to SASSA SRD Grants
The existence of SASSA SRD grants faces uncertainty due to anticipated budget reductions from the National Treasury.
Financial Crisis and Tax Collection Shortfall
South Africa’s financial stability is at risk as tax collections fall short by approximately R22 billion, an amount equivalent to the monthly expenditure on social grants, constituting 17% of tax revenue.
Revenue Shortfall Challenges
The expected 6% year-on-year growth in tax revenue, envisioned by SARS, is unlikely to materialize, with only a 2.6% increase projected. Factors like corporate tax underperformance, load-shedding, inflation, and cost-of-living concerns contribute to dwindling revenue.
Implications for Social Grants
The continuation of SASSA SRD grants is in jeopardy as the government grapples with the choice of either implementing significant cutbacks or raising VAT by two percentage points. The latter option is improbable in the lead-up to the 2024 national elections.
Potential Catastrophe if Grants Are Discontinued
Terminating social grants could have devastating consequences for millions of beneficiaries, including 13 million children receiving R500 monthly, 5 million pensioners and people with disabilities receiving R2080 per month, and the 8.5 million recipients of the R350 SRD grant, which was extended until 1 March 2024.
Eligibility for SASSA SRD Grants
SASSA administers the SRD (Social Relief of Distress) Grant, available to South African citizens, refugees, asylum seekers, and special permit holders aged between 18 and 60. For eligibility details, visit [link](insert link).
