COVID-19 social grant extended until 2025

Government Extends COVID-19 Social Relief of Distress Grant

The COVID-19 Social Relief of Distress Grant (SRD Grant) has been extended by the government until March 2025. This extension is being made while the government considers social security policy reforms and a funding model. The SRD Grant was initially introduced to provide support to low-income individuals who were affected by the lockdowns during the COVID-19 pandemic.

Allocation of Funds

In the Medium Term Budget Policy Statement (MTBPS) delivered to Parliament, Minister of Finance Enoch Godongwana announced that R34 billion has been allocated to extend the grant for another year. This provisional allocation will be retained while a comprehensive review of the entire social grant system is finalized. The 2023 Budget had previously indicated that the SRD Grant was only funded until March 2024.

Godongwana proposed that the fiscal framework make provision for funding the grant for the 2024/25 period. However, he emphasized that a comprehensive review of the entire social grant system by the Department of Social Development and the National Treasury is necessary beyond this period.

Social Protection Expenditure

Over the 2024 medium-term expenditure framework (MTEF) period, 61% of consolidated non-interest spending will go towards the social wage. This includes public spending on health, education, housing, social protection, transport, employment, and local amenities. Social protection transfers, which include grants such as the old age grant, child support grant, disability grant, and the COVID-19 SRD Grant, will account for R945.9 billion of this amount. South Africa’s social protection expenditure program is one of the largest among developing countries when measured as a percentage of gross domestic product (GDP).

The 2019 MTBPS projected that by 2040/41, social assistance beneficiaries (excluding the temporary COVID-19 SRD Grant) would increase to 22.5 million. This would require spending on social grants amounting to 3% of GDP annually. If the temporary grant or a similar type of new grant is made permanent, beneficiaries are projected to expand from 27.3 million in 2023/24 to 40.4 million in 2040/41. This would cost 3.8% of GDP in 2040/41 and require a corresponding permanent source of funding, such as additional revenue measures.

Education

Although additional funding has been provided to implement the 2023 public-service wage agreement, provincial education departments are constrained in hiring additional teachers. The Minister warned that this could lead to larger class sizes and higher learner-teacher ratios, potentially resulting in weaker educational outcomes.

To mitigate this, the sector plans to improve the approach to allocating teachers to schools, ensure cost-effective use of learner and teacher support materials, manage infrastructure projects more tightly, and focus on plans to catch up on lost teaching time.

Institutions in the post-school education and training sector, including the National Student Financial Aid Scheme, will need to align their student enrollment and bursary allocations with their budgets. Planned infrastructure spending will also be brought in line with institutions’ ability to spend.

Continued Health Services

The health sector aims to maintain service delivery despite budgetary constraints. While additional funding is provided to cover wage increases, baseline reductions are being implemented as part of fiscal consolidation. To minimize negative effects, the sector will need to improve efficiency in areas such as overtime payments, medical supplies, security services, and delay infrastructure projects.

The South African Law Reform Commission is finalizing a report on legal reform to manage medico-legal claims, which pose a significant financial risk. Allocations for oncology services will be shifted from the national health insurance grant to the national tertiary services grant to address funding fragmentation. A single grant is also proposed to consolidate the existing personal and non-personal services components of the national health insurance indirect grant. Funding will also be redirected towards the Office of Health Standards Compliance to strengthen the Health Ombud.

– SAnews.gov.za

SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 1: No Poverty
• SDG 3: Good Health and Well-being
• SDG 4: Quality Education
• SDG 8: Decent Work and Economic Growth
• SDG 10: Reduced Inequalities

2. What specific targets under those SDGs can be identified based on the article’s content?

• SDG 1.3: Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable.
• SDG 3.8: Achieve universal health coverage, including financial risk protection, access to quality essential health-care services, and access to safe, effective, quality, and affordable essential medicines and vaccines for all.
• SDG 4.1: By 2030, ensure that all girls and boys complete free, equitable, and quality primary and secondary education leading to relevant and effective learning outcomes.
• SDG 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.
• SDG 10.4: Adopt policies, especially fiscal, wage, and social protection policies, and progressively achieve greater equality.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Indicator for SDG 1.3: Percentage of population covered by social protection floors/systems.
• Indicator for SDG 3.8: Percentage of population with access to essential healthcare services.
• Indicator for SDG 4.1: Completion rate of primary and secondary education.
• Indicator for SDG 8.5: Employment-to-population ratio.
• Indicator for SDG 10.4: Gini coefficient (measure of income inequality).

Table: SDGs, Targets, and Indicators

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Source: sanews.gov.za

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