r350 srd grant 2024-2025

r350 srd grant 2024-2025

The Social Relief of Distress (SRD) grant has been a lifeline for millions of South Africans who have been devastated by the Covid-19 pandemic. Many grant recipients will be pleased to learn of the most recent development.

Qualifying R350 grant recipients can now breathe a sigh of relief, as the grant will be extended for another year.

Finance Minister Enoch Godongwana confirmed that the R350 grant will be extended until the end of March 2024 during his first Medium Term Budget Policy Statement in Parliament on Wednesday.

Medium-term changes to spending plans are driven mainly by the government’s decision to extend the special Covid-19 Social Relief of Distress grant by one year, until 31 March 2024.

Godongwana added that the decision was made while the government is still considering replacement options for the grant and has not yet decided how the replacement will be paid.

Other social grants, such as old-age and disability payments, will rise less than inflation as a result of the SRD grant’s extension.

Treasury estimates that the SRD grant will increase by at least 8.8% per year, with a potential financial impact of R64.9 billion in the 2030-31 fiscal year, putting public funds at risk.

According to the Finance Minister, the grant’s indefinite continuation will have a significant impact on the state’s financial stability in light of this estimate.

“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” he added