Here’s how South Africa’s social grant system has changed since 1994

Here's how South Africa's social grant system has changed since 1994  GroundUp

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Nov 5, 2023 - 02:30
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Here’s how South Africa’s social grant system has changed since 1994





South Africa’s Social Grant System: A Report on Expenditure, Recipients, and Values

Introduction

The South African Social Security Agency (SASSA) is responsible for providing social grants to the country’s population. In 2022, SASSA spent R232 billion on social grants, which accounts for approximately 11% of the national budget.

Grant Expenditure

  • Social grant spending has quadrupled since 1994 when adjusted for inflation.

  • The majority of beneficiaries receive either the Child Support Grant or Old Age Grant.

  • Grant amounts have remained relatively constant since 1994 when accounting for inflation.

Grant Recipients

In 1994, grants were provided to approximately 2.5 million people, primarily for old age, disability, and state maintenance. Today, SASSA pays out 26 million social grants each month.

Expenditure Increase Since 1994

Government spending on social grants has increased from R10.5 billion in 1994 to R232.7 billion in 2022. This increase is necessary to accommodate a growing population and to keep pace with inflation.

Number of Grant Recipients Increase Since 1994

About 42% of South Africa’s population currently receives a social grant, compared to only 6.5% in 1994. The main grants provided by the government include the Child Support Grant, Foster Child Grant, Old Age Grant, Grant in Aid, Disability Grant, Child Care Dependency, and Covid-19 Social Relief of Distress.

Grant Values Increase Since 1994

The Old Age Grant has increased from R390 to R1,985 in 2022. However, when adjusted for inflation, its value has remained relatively stable. The Foster Care Grant has not kept pace with inflation and is now only slightly above the lower-bound food poverty line. The Child Support Grant has contributed to reducing child poverty, but a review suggests that increasing the grant to at least the food poverty line is necessary to continue reducing child poverty.

Impact on Poverty Reduction

Social grants have contributed to a reduction in poverty rates since apartheid. The International Monetary Fund estimates that South Africa’s social grants cover about 60% of household expenditure for the poorest 20% of the population.

Conclusion

South Africa’s social grant system has undergone significant changes since 1994, with increased expenditure, a larger number of recipients, and varying grant values. While social grants have helped reduce poverty rates, further efforts are needed to address persistent poverty challenges in the country.

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SDGs, Targets, and Indicators in the Article

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

  • SDG 1: No Poverty

  • SDG 2: Zero Hunger

  • SDG 3: Good Health and Well-being

  • SDG 4: Quality Education

  • SDG 5: Gender Equality

  • SDG 8: Decent Work and Economic Growth

  • SDG 10: Reduced Inequalities

  • SDG 16: Peace, Justice, and Strong Institutions

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

  • Target 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.

  • Target 2.1: By 2030, end hunger and ensure access by all people, in particular the poor and people in vulnerable situations, including infants, to safe, nutritious and sufficient food all year round.

  • Target 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.

  • Target 4.5: Eliminate gender disparities in education and ensure equal access to all levels of education and vocational training for the vulnerable, including persons with disabilities, indigenous peoples and children in vulnerable situations.

  • Target 5.1: End all forms of discrimination against all women and girls everywhere.

  • Target 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.

  • Target 10.4: Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality.

  • Target 16.6: Develop effective, accountable and transparent institutions at all levels.

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

  • Indicator 1.3.1: Proportion of population covered by social protection floors/systems, by sex, distinguishing children, unemployed persons, older persons, persons with disabilities, pregnant women, newborns, work-injury victims and the poor and vulnerable.

  • Indicator 2.1.1: Prevalence of undernourishment.

  • Indicator 3.8.1: Coverage of essential health services (defined as the average coverage of essential services based on tracer interventions that include reproductive, maternal, newborn and child health, infectious diseases, non-communicable diseases and service capacity and access).

  • Indicator 4.5.1: Parity indices (female/male, rural/urban, bottom/top wealth quintile and others such as disability status, indigenous peoples and conflict-affected, as data become available) for all education indicators on access, participation and achievement in formal and non-formal education.

  • Indicator 5.1.1: Whether or not legal frameworks are in place to promote, enforce and monitor equality and non-discrimination on the basis of sex.

  • Indicator 8.5.1: Average hourly earnings of female and male employees, by occupation, age and persons with disabilities.

  • Indicator 10.4.1: Labour share of GDP, comprising wages and social protection transfers.

  • Indicator 16.6.1: Primary government expenditures as a proportion of original approved budget, by sector (or by budget codes or similar), disaggregated by sex, and by level of government (national, regional and local).

Table: SDGs, Targets, and Indicators

SDGs Targets Indicators
SDG 1: No Poverty Target 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. Indicator 1.3.1: Proportion of population covered by social protection floors/systems, by sex, distinguishing children, unemployed persons, older persons, persons with disabilities, pregnant women, newborns, work-injury victims and the poor and vulnerable.
SDG 2: Zero Hunger Target 2.1: By 2030, end hunger and ensure access by all people, in particular the poor and people in vulnerable situations, including infants, to safe, nutritious and sufficient food all year round. Indicator 2.1.1: Prevalence of undernourishment.
SDG 3: Good Health and Well-being Target 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. Indicator 3.8.1: Coverage of essential health services (defined as the average coverage of essential services based on tracer interventions that include reproductive, maternal, newborn and child health, infectious diseases, non-communicable diseases and service capacity and access).
SDG 4: Quality Education Target 4.5: Eliminate gender disparities in education and ensure equal access to all levels of education and vocational training for the vulnerable, including persons with disabilities, indigenous peoples and children in vulnerable situations. Indicator 4.5.1: Parity indices (female/male, rural/urban, bottom/top wealth quintile and others such as disability status, indigenous peoples and conflict-affected, as data become available) for all education indicators on access, participation and achievement in formal and non-formal education.
SDG 5: Gender Equality Target 5.1: End all forms of discrimination against all women and girls everywhere. Indicator 5.

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Source: groundup.org.za

 

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