Cape Town – Finance Minister Nhlanhla Nene says National Treasury has increased social grants by R10 to bring it in line with long-term inflation.
The Minister said the increase, which is part of government’s overall spending priorities, would provide a social security safety net for poor South Africans.
“Our social assistance programme is central to the relief of poverty and vulnerability.
“Approximately 16.7 million South Africans receive social grants currently.
“With effect from this month, the old-age, war veterans, disability and care dependency grants are increased by R10 to bring the annual increase in line with long-term inflation,” he said.
The increase, the Minister said, was effected on 1 October 2015.
He said over the spending period ahead, nearly R13 billion will be added to social assistance budgets to accommodate the increase in beneficiaries and ensure that the value of grants keeps pace with inflation.
According to National Treasury, the number of beneficiaries of social grants is projected to reach 18.1 million in 2018/19, growing at 2.2% a year over the next three years.
Treasury said this was mainly due to higher life expectancy and efforts to ensure all eligible children benefit from the grant.
Social assistance expenditure will remain stable as a percentage of GDP, National Treasury said.
Treasury also said that due to rising electricity prices and population growth, additional pressure has been put on the ability of municipalities to fund free basic services for low-income households.
National government proposed to add R6 billion to the local government equitable share to offset these trends.
Meanwhile, Minister Nene said government spending is set to grow above inflation over the next three years to fund government priorities.
Education gets biggest piece of pie
Delivering his Medium Term Budget Policy Statement, the Minister said education and skills development will take the lion’s share of this year’s spending, which will grow at 7.2%.
“The allocations we are proposing today are guided by the 2014-2019 medium term strategic framework and its 14 outcomes.
“Government proposes to allocate R313 billion to capital spending and housing over the next three years, with about R165 billion allocated to community infrastructure.
“Another R229 billion will be transferred to municipalities for infrastructure projects,” he said.
Deserving children at ECD centres to continue to get subsidy
National Treasury said, meanwhile, that government is planning to increase the number of children subsidised by 127 000.
Funding was also being considered for minor facilities upgrades to about 4000 ECD sites.
“Universal access to grade R is expected to be achieved within the next three years. In line with recommendations of the Department of Planning, Monitoring and Evaluation, the qualifications of grade R practitioners will be upgraded to ensure that quality improves.
“A well-developed early childhood development (ECD) system enhances educational outcomes. Of the 1.35 million children enrolled in this system, half are subsidised. Government aims to provide all qualifying children in registered centres with an ECD subsidy,” the National Treasury said. – SAnews.gov.za
