Fate of SASSA SRD grants to be decided on 1 November 2023

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2023-09-12 at 15:23 #420045

Nat Quinn
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The fate of SASSA SRD grants hangs in the balance and the decision on whether to continue with them or not will be made on 1 November 2023. That’s the date of Finance Minister Enoch Godongwana’s Medium Term Budget Policy Statement (MTBPS).

As we reported yesterday, the threat of SA’s R350 social distress grants being done away with is due to expected budget cuts from the National Treasury.

FATE OF SASSA SRD GRANTS

The fate of SASSA SRD grants will be decided on 1 November 2023 by the Finance Minister. Picture: File.

In short, the country’s finances are in a dire state as tax collection is approximately R22 billion short of government predictions, reports Daily Investor. Ironically enough, R22 billion is the exact number government spends to service social grants every month, or 17% of tax income.

SARS expected tax revenue to grow to 6% year-on-year, however, in reality it looks like it will only hit 2.6%. Corporate income from taxes has dropped significantly due to underperformance, load-shedding, high inflation and the cost-of-living crisis. All of these factors translate into a concerning decrease in revenue collection for SARS.

WHAT THIS MEANS FOR SOCIAL GRANTS

Picture: File.

Consequently, the fate of SASSA SRD grants hangs in the balance as government cannot afford to keep them going without either making major cutbacks or increasing VAT by two percentage points. And the latter option looks unlikely in the build-up to the 2024 national elections.

Should government wish to continue funding the R350 SASSA SRD grants, which were implemented in 2020 during the COVID-19 pandemic, the Finance Minister says it will most likely have to find a compromise between all options.

WHAT IF GOVERNMENT DROPS GRANTS?

Picture: SASSA.

That would be potentially catastrophic for the everyone on the social grant system, according to GroundUp. Beyond the SRD grants, 13-million children receive R500 per month.

5-million pensioners and people with disabilities receive R2080 per month. Clearly, the most at-risk SASSA grant scheme is the R350 SRD which currently goes to 8.5-million people and was only extended by one year to 1 March 2024.

WHO’S ELIGIBLE FOR SASSA SRD GRANTS?

The South African Social Security Agency (SASSA) is in charge of the SRD or Social Relief of Distress Grant. It is open to South African citizens, refugees, asylum seekers and special permit holders aged between 18- and 60-years old. For more information to see if you’re eligible click HERE.

What are your thoughts on the fate of SASSA SRD grants? Are they still necessary post-COVID? And would you continue funding them through higher VAT?

Be sure to share your thoughts with our audience in the comments section below. Send an email to info@thesouthafrican.com. Or you can WhatsApp us on 060 011 0211.

source:Fate of SASSA SRD grants to be decided on 1 November 2023 (thesouthafrican.com)
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The fate of SASSA SRD grants hangs in the balance and the decision on whether to continue with them or not will be made on 1 November 2023. That’s the date of Finance Minister Enoch Godongwana’s Medium Term Budget Policy Statement (MTBPS).

As we reported yesterday, the threat of SA’s R350 social distress grants being done away with is due to expected budget cuts from the National Treasury.

FATE OF SASSA SRD GRANTS

The fate of SASSA SRD grants will be decided on 1 November 2023 by the Finance Minister. Picture: File.

In short, the country’s finances are in a dire state as tax collection is approximately R22 billion short of government predictions, reports Daily Investor. Ironically enough, R22 billion is the exact number government spends to service social grants every month, or 17% of tax income.

Picture: File.

Consequently, the fate of SASSA SRD grants hangs in the balance as government cannot afford to keep them going without either making major cutbacks or increasing VAT by two percentage points. And the latter option looks unlikely in the build-up to the 2024 national elections.

Should government wish to continue funding the R350 SASSA SRD grants, which were implemented in 2020 during the COVID-19 pandemic, the Finance Minister says it will most likely have to find a compromise between all options.

WHAT IF GOVERNMENT DROPS GRANTS?

Picture: SASSA.

That would be potentially catastrophic for the everyone on the social grant system, according to GroundUp. Beyond the SRD grants, 13-million children receive R500 per month.

5-million pensioners and people with disabilities receive R2080 per month. Clearly, the most at-risk SASSA grant scheme is the R350 SRD which currently goes to 8.5-million people and was only extended by one year to 1 March 2024.

WHO’S ELIGIBLE FOR SASSA SRD GRANTS?

The South African Social Security Agency (SASSA) is in charge of the SRD or Social Relief of Distress Grant. It is open to South African citizens, refugees, asylum seekers and special permit holders aged between 18- and 60-years old. For more information to see if you’re eligible click HERE.

What are your thoughts on the fate of SASSA SRD grants? Are they still necessary post-COVID? And would you continue funding them through higher VAT?

Be sure to share your thoughts with our audience in the comments section below. Send an email to info@thesouthafrican.com. Or you can WhatsApp us on 060 011 0211.

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The fate of SASSA SRD grants hangs in the balance and the decision on whether to continue with them or not will be made on 1 November 2023. That’s the date of Finance Minister Enoch Godongwana’s Medium Term Budget Policy Statement (MTBPS).

As we reported yesterday, the threat of SA’s R350 social distress grants being done away with is due to expected budget cuts from the National Treasury.

FATE OF SASSA SRD GRANTS

The fate of SASSA SRD grants will be decided on 1 November 2023 by the Finance Minister. Picture: File.

In short, the country’s finances are in a dire state as tax collection is approximately R22 billion short of government predictions, reports Daily Investor. Ironically enough, R22 billion is the exact number government spends to service social grants every month, or 17% of tax income.

WHAT THIS MEANS FOR SOCIAL GRANTS

Picture: File.

Consequently, the fate of SASSA SRD grants hangs in the balance as government cannot afford to keep them going without either making major cutbacks or increasing VAT by two percentage points. And the latter option looks unlikely in the build-up to the 2024 national elections.

Should government wish to continue funding the R350 SASSA SRD grants, which were implemented in 2020 during the COVID-19 pandemic, the Finance Minister says it will most likely have to find a compromise between all options.

WHAT IF GOVERNMENT DROPS GRANTS?

Picture: SASSA.

That would be potentially catastrophic for the everyone on the social grant system, according to GroundUp. Beyond the SRD grants, 13-million children receive R500 per month.

5-million pensioners and people with disabilities receive R2080 per month. Clearly, the most at-risk SASSA grant scheme is the R350 SRD which currently goes to 8.5-million people and was only extended by one year to 1 March 2024.

WHO’S ELIGIBLE FOR SASSA SRD GRANTS?

The South African Social Security Agency (SASSA) is in charge of the SRD or Social Relief of Distress Grant. It is open to South African citizens, refugees, asylum seekers and special permit holders aged between 18- and 60-years old. For more information to see if you’re eligible click HERE.

What are your thoughts on the fate of SASSA SRD grants? Are they still necessary post-COVID? And would you continue funding them through higher VAT?

Be sure to share your thoughts with our audience in the comments section below. Send an email to info@thesouthafrican.com. Or you can WhatsApp us on 060 011 0211.