Enoch Godongwana Considered Cutting SRD Grant to Avoid Tax Hike, SA Wants Bloated Cabinet Trimmed

• Enoch Godongwana considered scrapping the COVID-19 Social Relief of Distress (SRD) grant
• The Finance Minister stated that scrapping the grant would mean no increase in taxes in the budget
• South Africans suggested that the government cut the size of the cabinet to save money

Briefly News journalist Byron Pillay has spent a decade reporting on the South African political landscape, crime and social issues

WESTERN CAPE – All eyes are on the upcoming budget speech and how the Finance Minister aims to avoid a tax increase.

The original budget speech, which was scheduled for 19 February 25, had to be postponed due to disagreements over the contents of the speech. The proposed 2% VAT hike was said to be the major stumbling block.

Minister considers cutting Social Relief of Distress grant

Numerous options have been discussed with National Treasury needing to cover a shortfall of approximately R60 billion. An increase in VAT has not been ruled out, with the treasury considering a smaller increase to help make up the deficit.

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During an interview with Times LIVE, Godongwana also raised the issue of the COVID-19 Social Relief of Distress (SRD) grant. The SRD grant was introduced as a temporary measure during COVID-19 but the monthly R370 now benefits millions.

The grant was originally intended to last for a period during 2020 but continues to this day. Godongwana admitted that he would be able to avoid implementing a VAT hike if the grant was scrapped.

“If you allowed me to cut the SRD, I wouldn’t increase anything. I’m faced with increased expenditures which are not in the budget,” the minister said.

He added that he previously raised concerns that if the grant continued, it would not be affordable. (edited)

What you need to know about the budget speech

• Julius Malema claimed that the government had collapsed after the budget speech was postponed
• Khumbudzo Ntshavheni claimed that African National Congress members objected to the VAT hike first
• President Cyril Ramaphosa has broken his silence after the 2025 Budget Speech was officially postponed
• Moeletsi Mbeki weighed in on the 2% VAT hike claiming that the ANC no longer cared about the poor

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Social media users want salaries cut instead

Social media users expressed concern about the minister's admission. Some stated that support for the African National Congress would decline if that happened, while others told him to focus on the bloated cabinet and ministers' salaries first.

Hector Mokhothu said:

"They must cut their salaries, they must stop driving expensive cars, and they must carry their own lunch box or pay for their own. They must cancel these credit cards, and close the gap between the rich and poor."

Mukuna Mukuna Kanyenda added:

"You scrap SRD grant and the ANC votes will decline further to the point where the ANC become an opposition in the parliament."

Wayne Hector stated:

"They will try anything to milk us over and over, but they will never cut the SRD grant. With the SRD gran,t they keep people dependent on the government which also guarantees votes. So they will give money to healthy people to stay at home for not doing anything.

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Lehlohonolo Lebokfela Tsotetsi suggested:

"Why not reduce the Cabinet and the salaries of Ministers and members of Parliament? Why victimise the poor who are already the victims of the incompetent and corrupt ANC?"

Ceejay Bothman said:

"Reduce the bloated cabinet."

Nhlanhla Mdlanyoka added:

"Scrap Deputy Ministers and revisit MPL's and MPs benefits, then we are more than fine."

Sfiso Sharon Khumalo exclaimed:

"Reduce the cabinet."

Ndumiso Prince Nsibande said:

"Scrap it and let's see whether tomorrow you will be leading the country or not."

Ramaphosa says budget speech postponement not a crisis

Briefly News reported that President Cyril Ramaphosa defended the Minister of Finance, Enoch Godongwana.

Ramaphosa defended the minister after the budget speech failed to go ahead on 19 February 2025.

The minister and government received criticism for a proposed 2% Value-Added Tax (VAT) increase.

Source: Briefly News