Johannesburg - With a budget allocation of R263 billion for the financial year 2023/24, R253bn consists of direct cash transfer payments that Sassa expects to pay to a projected 27 million eligible grant beneficiaries, Minister Lindiwe Zulu said during the tabling of the Social Development Portfolio Budget Vote.
According to Stats SA, the South Africa population is estimated to be 60.6 million as of the end of June 2022. This means that almost half the population could be grant recipients.
“Sassa’s allocation accounts for an estimated 96.4% of the department’s total budget over the MTEF (Medium Term Expenditure Framework) period, which goes directly into the hands of the beneficiaries,” Zulu said.
She said the department’s total budget allocation included R7.8bn for Sassa’s administration of grants, and R220m for the National Development Agency so it could carry out its mandate as legislated in the National Development Agency Act 108 of 1998 as amended.
The NDA aimed to promote appropriate and sustainable partnerships between the government and civil society organisations to eradicate poverty and its causes.
Zulu said she was presenting this Budget Vote against the backdrop of yawning inequalities between South Africans; the rising cost of living; a record high unemployment rate of 32.9%; stagnating economic growth; and a shrinking fiscal space.
“A case in point is the increase in the rate of lending money to a 14-year high of 11.75% last Thursday. Compounding these dim economic prospects are the health, social and climate shocks and disasters that South Africans continued to endure throughout the Sixth Administration. Consequently, this Budget Vote adds to our concerted push back against the elements, shocks and disasters that are an affront to the people."
Zulu said the most pressing concern was that the social development budget allocation had not kept pace with the growing population and the complexity of its social development needs.
“Equally concerning are the rising costs of unfunded and underfunded mandates that this portfolio is expected to implement. In this regard, we look forward to working with the honourable members to correct these resource shortfalls and ensure that we meaningfully attend to the aspirations of the people.”
The Star