South African social welfare costs the country half it’s taxes
The National Treasury has admitted that South African social welfare costs the country 61% of the taxes it collects every year.
Whether we like to admit it or not, South African social welfare in 2024 costs a massive amount to the country. In a report by Daily Investor, the Director-General of the National Treasury, Duncan Pieterse, admits that R6 out of every R10 collected from taxpayers will go towards South African social welfare in 2024. These include South African Social Security Agency (SASSA) social grants, healthcare and education.
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According to studies conducted by The Conversation, social grants do have a long-term benefit, particularly for the elderly. It found through extensive trials over a number of years, that elderly citizens had better cognitive health later in life thanks to receiving grant money. By easing the financial burden, South African social welfare in 2024 actually slowed down ageing-related memory decline and the probability of dementia, the report said.
SOUTH AFRICAN SOCIAL WELFARE IN 2024
Moreover, last week’s budget speech confirmed that 51% of National Treasury spending will continue to be on social welfare. In fact, it did an about-face and enhanced the social wage in its 2024 budget. Thus reversing a planned R58-billion reduction as stipulated in the 2023 Medium Term Budget Policy Statement (MTBPS).
More is spent on education, healthcare, and social grants than on economic development, policing, community development and general public services. The question must be asked whether this push for South African social welfare in 2024 is in fact the right one for Mzansi.
SOCIAL GRANTS BEYOND 2024
Finance Minister, Enoch Godongwana, confirmed that the government will spend R266 billion on social grants in the 2024/25 financial year. Or 3.6% of GDP (up from R250.97 billion in 2023/24).
- 27.7-million people receive SASSA grants currently.
- This is expected to increase to 28.3 million in the next 12 months.
- 9.2-million people will receive the COVID-19 SRD grant this year.
- Minus SRD stipends, 18.8-million beneficiaries with social grants will increase to 19.7 million in 2026/27.
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