THE R350 relief grant has been extended by another year.
Finance Minister Enoch Godongwana said this during his Mid-Term Budget Policy Statement (MTBPS) in Parliament on Wednesday, 1 November.
He announced that R34 billion is allocated to extend the Covid-19 Social Relief of Distress grant by another year.
"Over the medium term, a provisional allocation is retained while a comprehensive review of the entire social grant system is finalised," Godongwana said.
The government introduced the grant to support unemployed people affected by the lockdowns during the Covid-19 pandemic.
Godongwana said after a year, a review of the entire social grant system by the Department of Social Development and the National Treasury is required.
The grant was introduced to support low-income earning individuals affected by the lockdowns during the Covid-19 pandemic and has been extended several times.
The minister painted a grim picture of Mzansi's economy as he pointed out that because of debt-interest costs soaring and a sluggish economy, the National Treasury may be forced to increase taxes in the new financial year.
He said the state was preparing reconfiguration of government departments, entities and programmes.
This means some departments may be chopped up or merged with others.
ALSO READ | Imposter bust in exam cheating scandal!Opens in new window
"Madam Speaker, the economic outlook over the medium term remains weak, reflecting the cumulative effect of power cuts, the poor performance of the logistics sector, high inflation, rising borrowing costs, and a weaker global environment," he said.
He said government spending has exceeded revenue since the 2008 global financial crisis.
"These rising annual budget deficits have reached an extent where the government will have to borrow an average of R553 billion per year over the medium term," said Godongwana.
He said Mzansi experienced more power cuts from the beginning of the year to September 2023 than in the whole of 2022.
"However, over the medium term, additional generation capacity from renewable energy investments combined with the return of Eskom's units that are out of service should ease power cuts," he said.
Godongwana lamented that crime was a safety, economic and social issue.
"A safe environment for our people to fully participate in economic and social life is non-negotiable. Fighting crime is a key ingredient of enhancing economic growth," he said.
