How Much Will The Government Allocate for SASSA Social Grants in 2025
In a recent financial report by Daily Investor, it was estimated that the state government is most likely to spend R266.21 billion on SASSA social grants in 2025. This is a significant increase from the R250.97 billion spent in the 2023/2024 financial year, accounting for 3.6% of GDP. However, there are projections of a decrease in the subsequent three years.
How Much Will The Government Allocate for SASSA Social Grants in 2025
In the last financial year, the government spent R250.97 billion, and for 2024/25, it’s estimated to be R266.21 billion. Yet, they expect to spend less in the next three years – R248.41 billion in 2025/26 and R259.79 billion in 2026/27.
The Focus Of The Medium Term Expenditure Framework (MTEF) For SASSA Grants
Over the medium-term expenditure framework (MTEF) period, a substantial allocation of R1.17 trillion is set aside for social grants and welfare services, with a focus on helping specific groups like women, youth, and those with disabilities. Most of this money, about 81.8%, goes to social grants.
How The Government Plan to Address Inflation and Enhance Access to Social Grants
Excluding the COVID-19 Social Relief of Distress (SRD) grant, expenditures on social grants are set to increase from R217.1 billion in 2023/24 to R259.3 billion in 2026/27. These adjustments aim to keep pace with inflation and enhance accessibility for eligible people.
How Much Is Set Aside For Covid-19 SRD Grant
While the COVID-19 SRD grant is allocated R33.6 billion in 2024/25, it is interesting to note a decrease from the R33.89 billion spent in the previous fiscal year (2023/24). Provisional allocations for social protection are introduced for 2025/26 and 2026/27, pending decisions on continuity and funding beyond March 2025.
Also Check: Budget 2024: R100 Increase for SASSA Old Age Grant From April
How Many People Are Expected to Receive SASSA Social Grants
More people are getting grants – from 27.78 million in 2023/24 to an expected 28.31 million this year. Of these, over 9.2 million individuals are set to receive the SRD grant. Grant beneficiaries, excluding SRD, are projected to grow from 18.8 million in 2023/24 to 19.7 million in 2026/27.
The Key Grant Categories and How Much They Are Expected to Increase
The child support grant and old age grant make up almost 65% of the total spending during the MTEF period. Notably, the old age grant, war veterans grant, disability grant, and care dependency grant will witness incremental increases by R90 in April 2024, with an additional R10 in October 2024. The foster care grant will see an R50 increase in April 2024, while the child support grant will rise by R20 in the same month.
Also Check: Will the Election Affect The SASSA Grant?
The Future Projections for SASSA Social Grant Spending in 2025 And Beyond
Looking ahead to 2025, the National Treasury’s projections for SASSA Social Grants indicate a record spending of R266 billion, marking the highest-ever expenditure on social welfare in South African history. Subsequent years show a planned decrease, with allocations of R246 billion for 2025/26 and R259 billion for 2026/27.
Why Did The South African Government Decide To Increase Social Grant Spending in the 2024/25 Fiscal Year?
The decision to increase social grant spending to R266.21 billion in 2024/25 reflects a commitment to addressing the needs of the population, especially in the face of economic challenges.
Also Check: SASSA Ends Cash Payment Methods By 30 April 2024
What Factors Contributed to the Projected Decrease in Social Grant Spending Over the Next Three Years?
The projected decrease in social grant spending over the next three years (R248.41 billion in 2025/26 and R259.79 billion in 2026/27) could be influenced by shifting budget priorities, economic considerations, and the change in social welfare.
South Africa’s government is making big decisions about how much they spend on SASSA social grants. They’re helping a lot of people, but also planning for the future by adjusting their spending in the coming years. It’s a balancing act between meeting current needs and planning for what’s to come.
