MTBPS 2023: Enoch Godongwana Says R34 Billion To Be Added to R350 Grant, South Africa Displeased

MTBPS 2023: Enoch Godongwana Says R34 Billion To Be Added to R350 Grant, South Africa Displeased

  • Minister of Finance Enoch Godongwana announced that the R350 grant will be extended by a year
  • Godongwana revealed during the Mid-Term Budget Policy Speech that the Social Relief of Distress grant will have R34 billion added to it
  • South Africans were unhappy and believed that this amount of money was unnecessary, and the president of the National Union of Municipal Chambers of Commerce and Industry said this money could be used to empower SMEs

PAY ATTENTION: Briefly News WhatsApp Channel - Breaking News on the Go - FOLLOW NOW

Tebogo Mokwena, an experienced Briefly News current affairs journalist, contributed political coverage to Daily Sun, Capricorn Post and Vutivi Business News for eight years.

Finance Minister Enoch Godongwana allocated R34 billion to the Social Relief of Distress R350 grant
South Africans were unhappy with the announcement that the SRD grant would have R34 billion added to it. Image: Dwayne Senior/Bloomberg via Getty Images
Source: Getty Images

The Finance Minister Enoch Godongwana revealed that the Social Relief of Distress (SRD) fund will be extended until 2025, with R34 billion earmarked to support the unemployed. South Africans were disappointed in the government and pointed out that this money could be used to create employment.

Read also

Godongwana defends treasury's growth stance amid widespread criticism

SRD grant to be extended

According to SABC News, Godongwana said that R34 billion will be allocated to the SRD grant. Godongwana also noted that the entire social grant system will be finalised pending a comprehensive review of the whole social grant system.

How much government spends on grants

The Mail & Guardian reported the grant will be extended for two years. It also revealed that the government spends R945 billion on the social grant system, including the SRD, child, disability and older persons’ grants. This means that South Africa is among the countries that are high spenders regarding social support spending.

Money can be used to create jobs with SMEs: Jeleni

Albert Jeleni, the chairperson of the National Union of Municipal Chambers of Commerce and Industry (NUMCCI), told Briefly News what the money could be used for.

Read also

ActionSA’s Herman Mashaba says African National Congress ran out of ideas to create employment in South Africa

"On average, an SMME in South Africa creates one-and-a-half jobs, and we believe that the money poured into SMMEs is more sustainable than grant support. The grant support would work in an environment where jobs are available and job seekers need support while they look for jobs.
"Currently, the government cannot create more jobs, and the government plans to create jobs through SMMEs. We, therefore, expect all efforts to be on SMMEs, because in other countries SMMEs employ 50% to 80% of the workforce. There is room for SMMEs to create jobs with proper support," he added.

South Africans slam the government for billions spent

Netizens on Facebook disapproved of the allocation and criticised the government, who they believe are doing little to tackle the issue of unemployment.

Zakes Nkosi said:

“R34 billion can create employment and skills. This is not sustainable. This government must go.”

Read also

Municipalities’ R56.8 billion Eskom debt will be written off in 3 years, SA furious

Cebo Bhele Makupula remarked:

“Next year is elections year. This is expected. They know that only grant recipients still believe their lies.”

Goodase Bafilwe added:

“We’re hungry right now. R350 is air passing by, not filling the stomach.”

Katleho James asked:

“Where is the money going to come from?”

Tlhologelo C. Gwanga wrote:

“Matric exams have started, and loadshedding was reimplemented. This shows that Rugby was more important than education in this country. But I am not surprised. All ANC members have no proper educational background, so I don’t expect them to understand the importance of education.”

R350 grant cannot be cancelled: Godongwana

In a similar article, Briefly News reported that Enoch Godongwana said the SRD grant cannot be stopped until a replacement can be found.

Godongwana spoke at a National Assembly debate and revealed that the government is working on an alternative and more sustainable replacement for the R350 grant.

Read also

EFF slams Finance Minister Godongwana's 'irrational' budget cuts in MTBPS

South Africans were weary and demanded that the government deliver on promises like service delivery and electricity.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ click on “Recommended for you” and enjoy!

Source: Briefly News

Online view pixel