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Treasury Forecasts Potential Rise in Social Relief Grant to R130bn by 2030

Published September 21, 2023
9 months ago

The necessary funds to boost the R350 Social Relief of Distress (SRD) grant to potential levels of R130bn annually by the year 2030 could be a reality, acknowledges the South African Treasury. This projection is fundamentally rooted in the potential escalation of the grant's monetary value. The adjustment is expected to gradually move closer to the country's food poverty line if the present rate of socio-economic circumstances continues.

The strategic forecast of R130bn per year by 2030 is influenced by predicted steady increases to R700 per SRD grant recipient over the approaching seven years. With this projection, if the pecuniary value were to be elevated to R480 by the close of 2023, the overall burden on the state's purse would be R89bn.

Alternatively, should the grant's monetary value maintain its current rate within the next seven years, the state would face a cost of R65bn. This estimation originates from the treasury's rigorous analysis, taking into account current social and economic trends in South Africa.

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