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South Africa

GroundUp: Gordhan announces 9% boost in social grant spending

South Africa’s old age grant is to rise R90 to R1,600 a month. By Barbara Maregele for GROUNDUP.
GroundUp
GroundUp-grants-budget

First published by GroundUp

Social grants provide much-needed assistance to the most vulnerable”, said Finance Minister Pravin Gordhan on Wednesday, announcing a 9% increase in spending on social grants in the 2017-18 Budget.

Spending on social grants is budgeted to rise from about R138.7-billion in the 2016-17 budget to R151.6-billion in 2017-18. Most of the spending is to go on child support grants (R56.3-billion) and old age grants (R64.6-billion).

Gordhan said funding for social grants would rise at an average of 8.2% per year over the next few years.

Gordhan said the old age grant would increase by R90, to R1,600 a month, and to R1,620 for those older than 75. Disability and care dependency grants are to increase by R90, to R1,600. Foster care grants will increase by R30, to R920 a month, and child support grants will increase to R380.

This graph shows the breakdown:

GrantApril 2016October 2016April 2017
Older persons1,5001,5101,600
Older persons (75+)1,5201,5301,620
Disability1,5001,5101,600
War veterans1,5201,5301,620
Grant-in-aid350350Not
mentioned
Child support350350380
Foster care890890920
Care dependency1,5001,5101,600

According to the Budget documents, the number of people receiving social grants is expected to top 18-million by 2020. About 12.8-million will be receiving child support grants and 3.6-million old age pensions. DM

Photo: Protesters outside Parliament demanded a pro-poor Budget from Minister of Finance Pravin Gordhan on Wednesday. Photo: Ashraf Hendricks

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