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.
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:
| Grant | April 2016 | October 2016 | April 2017 |
|---|---|---|---|
| Older persons | 1,500 | 1,510 | 1,600 |
| Older persons (75+) | 1,520 | 1,530 | 1,620 |
| Disability | 1,500 | 1,510 | 1,600 |
| War veterans | 1,520 | 1,530 | 1,620 |
| Grant-in-aid | 350 | 350 | Not mentioned |
| Child support | 350 | 350 | 380 |
| Foster care | 890 | 890 | 920 |
| Care dependency | 1,500 | 1,510 | 1,600 |
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
Become an Insider