The Social Relief of Distress (SRD) grant has been a vital source of income for millions of South Africans affected by the devastating impact of the Covid-19 pandemic. Many of the grant’s beneficiaries will be pleased to know the most recent development.
Qualifying R350 grant beneficiaries can now breathe a sigh of relief, as they will continue receiving the grant for an additional year.
While delivering his first Medium Term Budget Policy Statement in Parliament on Wednesday, Finance Minister, Enoch Godongwana confirmed that the R350 grant will be extended to the end of March 2024.
Medium-term changes to spending plans are driven mainly by the government’s decision to extend the special Covid-19 Social Relief of Distress grant by one year, until 31 March 2024.
Godongwana added that the decision was made while the government is still considering options to replace the grant and has not yet made a decision regarding how the replacement will be paid.
Other social grants, such as old age grants and disability payments, will increase less than inflation as a result of the extension of the SRD grant.
Treasury estimates that the SRD grant will increase by at least 8.8% annually, with a potential financial impact of R64.9 billion in the 2030–31 fiscal year, which would have an effect on the viability of the public funds.
According to the Finance Minister, the stability of the state’s finances will be seriously impacted by the grant’s indefinite continuation in light of this estimate.
“Despite the provision made in this budget, I want to reiterate that any permanent extension or replacement will require permanent increases in revenue, reductions in spending elsewhere, or a combination of the two” he added
The Social Relief of Distress (SRD) grant was introduced in May 2020 as a short-term solution to address the needs of those who were most at risk and were impacted by Covid-19-induced lockdown measures.
Since then, it has been prolonged numerous times. The future of the grant is being discussed, and it will require some extremely difficult trade-offs and financial choices according to the Treasury Department.
