D-Day for SASSA SRD Grant extension

D-Day for SASSA SRD Grant extension has been on the cards for months now. However, now that the day has come for Finance Minister Enoch Godongwana’s Medium-Term Budget Policy Statement (MTBPS), what will be the fate of a SASSA SRD Grant extension?

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Speaking ahead of the MTBPS, President Cyril Ramaphosa hinted positively, saying that any cost-saving measures will not affect social grants, reports IOL. But what are the different ramifications if a SASSA SRD Grant extension is agreed upon?

BEYOND MARCH 2024

In the Finance Minister’s 2023 budget speech, it was announced that the SASSA SRD Grant extension would go to 31 March 2024. For the millions of South Africans who rely on this money to make ends meet since COVID, this was great news. However, what will happen beyond March 2024?

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According to SASSA Grants, it says the R350 social relief grant is likely to be extended past March 2024. All shall be revealed by Godongwana during the MTBPS at 14h00 on 1 November 2023. Some economists are even saying it could become permanent, which would be a boon for millions of needy South Africans.

COULD COST SOUTH AFRICA R50 BILLION

For government to issue a SASSA SRD Grant extension, the Finance Minister will face some uncomfortable decisions. To make the R350 grant permanent would see an unbudgetted amount of R50 billion added to government expenses. An unlikely outcome considering the South African Reserve Bank (SARB) is already servicing hundreds of billions in debt.

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Some experts argue the SASSA SRD Grant could be subsumed into the Basic Income Grant (BIG), or others like the War Veteran’s Grant could be reduced. This would allow an increased payout higher than the current R350 SRD stipend.

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Of course, the money for such social relief programs will not come out of thin air. And the likelihood of such a change could some from increased taxes or borrowing money, which would continue to inflate our poor debt-to-GDP ratio.

HOW TO WATCH THE MTBPS

The Finance Minister’s MTBPS can be seen on:

• eNCA.
• Parliament TV.
• SABC.
• DStv Channel 408 – Parliament TV.
• DStv Channel 412 – Business Day TV.

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What do you think of a SASSA SRD Grant extension beyond March 2024? Needed or unnecessary drain on government resources? Be sure to share your thoughts with our audience in the comments section below. And don’t forget to follow us @TheSANews on X and The South African on Facebook for the latest updates.

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