---
title: "Public sector wages, grants get 60% of the Budget"
description: "In a clear bid to make this a people-friendly Budget in an election year, 60% of the Budget – R3.7-trillion – will be spent on the salaries for teachers, doctors and nurses, and social grants over the next three years."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "BUDGET 2024"
author: "Neesa Moodley"
author_url: "https://www.dailymaverick.co.za/author/neesa-moodley/"
canonical_url: "https://www.dailymaverick.co.za/article/2024-02-21-budget-grants-public-sector-wages-get-60/"
published: "2024-02-21T15:14:42"
updated: "2024-02-23T13:06:26"
lang: "en-ZA"
word_count: 285
---

# Public sector wages, grants get 60% of the Budget

> In a clear bid to make this a people-friendly Budget in an election year, 60% of the Budget – R3.7-trillion – will be spent on the salaries for teachers, doctors and nurses, and social grants over the next three years.

By Neesa Moodley · Published 21 February 2024, 17:14 SAST · Updated 23 February 2024, 15:06 SAST

## Key points
- In a fiscal twist of fate, R58-billion spending cuts have been undone to pay public servants, while social grants get a boost, but the R350 SRD grant will have to wait till 2024 for its makeover, as Finance Minister Enoch Godongwana juggles the national purse strings to keep up with inflation and 19 million reliant citizens.
- R58-billion spending reductions reversed in 2023 Medium Term Budget Policy Statement to increase salaries of public servants.
- Permanent social grants increased, unlike unadjusted personal income tax brackets.
- Work in progress to improve Covid-19 SRD grant by April 2024, within existing fiscal framework.
- Social grants spending to rise from R217-billion in 2023/24 to R259-billion in 2026/27, with beneficiaries projected to increase from 18.8 million to 19.7 million.

## Content

About R58-billion of the spending reductions announced in the 2023 Medium Term Budget Policy Statement have been reversed to increase funding to pay the salaries of teachers, nurses, doctors, police and other public servants.

Unlike personal income tax brackets, which have not been adjusted for inflation, permanent social grants have been increased.

This means the Social Relief of Distress (SRD) grant of R350 will not be increased immediately. However, Finance Minister Enoch Godongwana says work is under way to improve the Covid-19 SRD grant by April 2024. National Treasury will work with the Department of Social Development and these “improvements” will be within the current fiscal framework. For the extension of the grant beyond March 2025, the social security policy reforms, together with the funding source, will be finalised.

**Read more in Daily Maverick:**[Hidden key to the Budget](https://www.dailymaverick.co.za/article/2024-02-20-the-hidden-key-to-the-budget/)

Spending on social grants excluding the SRD grant will increase from R217-billion in 2023/24 to R259-billion in 2026/27. Grant beneficiaries (excluding SRD grant beneficiaries) are projected to increase from 18.8 million in the current financial year to 19.7 million in 2026/27.

To keep pace with inflation and increase access, permanent social grants will increase as follows:

- Old age, war veterans, disability and care dependency grants – up by R100 to R2,185. This increase will be split into R90 effective from April, and R10 effective October;
- Foster care grants – up by R50 to R1,180; and
- Child support grants – up R20 to R530.

“We are sensitive to the increase in the cost of living for the nearly 19 million South Africans who rely on these grants to make ends meet. In this regard, we have done as much as the fiscal envelope allows,” Godongwana said. **DM**