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Government spends R36.4bn on SRD grant

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By Thapelo Molefe

Acting Minister of Social Development Sindisiwe Chikunga has revealed that government will spend R36.4 billion on the COVID-19 Social Relief of Distress (SRD) grant this financial year, as pressure continues to grow for the introduction of a permanent basic income support system.

Tabling Budget Vote 19 in Parliament on Tuesday, Chikunga confirmed that the SRD grant had been extended until March 2027 and currently supports about eight million unemployed working-age South Africans.

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The SRD grant forms part of the Department of Social Development’s R302 billion budget for the 2026/27 financial year, with R293 billion allocated to direct social assistance payments.

Chikunga said the department had already made progress on plans for a future income support model.

“The department has also made considerable progress since the tabling of the Draft Basic Income Support Policy to Cabinet, including the finalisation of the costing models,” she told MPs.

The remarks come amid growing debate over whether the temporary SRD grant should be replaced with a permanent Basic Income Support programme as unemployment and the cost of living continue to rise.

Government first introduced the SRD grant during the COVID-19 pandemic as an emergency relief measure, but it has since become a critical source of income for millions of households.

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Chikunga said the department was also working to connect grant beneficiaries to economic opportunities through a livelihoods programme being piloted in the Free State, Gauteng and KwaZulu-Natal in partnership with FinMark Trust.

The programme, called Generating Better Livelihoods for Child Support Grant Recipients, aims to help beneficiaries access sustainable income opportunities and reduce long-term dependence on grants.

At the same time, the department is intensifying efforts to tighten oversight within the social grants system.

Chikunga said SASSA’s grant review process had already saved the state more than R1 billion, while biometric verification systems had now been rolled out to all 432 SASSA offices nationwide.

She also announced that lifestyle audits would be conducted for SASSA officials working in high-risk areas such as grant administration, procurement, finance and ICT.

The minister acknowledged ongoing economic pressures facing households, saying geopolitical tensions and rising living costs continued to place strain on vulnerable South Africans.

“We table this Budget Vote under challenging global and domestic conditions,” Chikunga said.

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