The Covid-19 Social Relief of Distress (SRD) Grant \u2013 also known as the R350 grant \u2013 is expected to be extended to the end of March 2024.<\/p>\n
This as the government continues to consider options for a replacement for the grant, with no decision taken yet on how the replacement will be financed.<\/p>\n
Finance Minister Enoch Godongwana announced the extension of the grant during his presentation of the Medium Term Budget Policy Statement in Parliament on Wednesday afternoon.<\/p>\n
\u201cThe SRD grant was introduced in May 2020 as a temporary measure to respond to the needs of the most vulnerable, who were affected by [Covid-19 induced] lockdown measures. It has been extended several times since then. Discussions on the future of the grant are ongoing and involve very difficult trade-offs and financing decisions,\u201d he said.<\/p>\n
As a result of the extension of the SRD grants, other social grants \u2013 such as old age grants and disability grants \u2013 will increase lower than inflation.<\/p>\n
According to Treasury, the SRD grant is expected to grow by at least 8.8% every year, and its financial implications could reach some R64.9 billion in the 2030\/31 financial year \u2013 casting an impact on the sustainability of the public purse.<\/p>\n
In light of this estimation, Godongwana said an indefinite continuation of the grant will have a serious impact on the stability of the public purse.<\/p>\n
Despite the provision made in this budget, I want to reiterate that any permanent extension or replacement will require permanent increases in revenue, reductions in spending elsewhere, or a combination of the two.<\/p>\n