R350 grant: Here’s how billions set aside for social relief will be spent

Sassa’s Chief Financial Officer Tsakeriwa Chauke on Tuesday explained how funding for the South African Social Security Agency (Sassa) social relief distress grant would be spent.

Speaking before Parliament’s standing committee, Chauke said the R26.7 billion – if approved – would be used to fund the R350 monthly social relief of distress grants until March 2022.

Sassa grant spending

Of the R26.7 billion set aside, R500 million will be spent on improving Sassa’s systems. Chauke said R42 million will be spent on the call centre.

R323 million would go to the South African Post Office as branches around the country offer an easy and convenient way for beneficiaries to access their grants.

Therefore, Chauke said most of the funding would go to “over-the-counter services”. Approximately R35 million would go towards communications.

An additional R51 million has been set aside for bank charges, Chauke said.

No cash for basic income grant

Finance Minister Enoch Godongwana said the ANC’s ‘wish list projects’ would cut deep into South Africa’s deteriorating fiscal capacity, “as measured by the variation of own tax revenue as a percentage of domestic output”.

Earlier this year, Godongwana said the funds set aside for the basic income grant should be used as a grant to benefit unemployed black youths in South Africa.

His proposal would benefit millions of young people who face an uncertain future. South Africa has approximately 4.2 million unemployed citizens between the ages of 15 and 35.

“My argument is that we must invest in them. Even the amount we may spend could be more than a grant.

“We can’t condemn young people to a cycle of dependence, particularly because these are young black kids.”

Compiled by Cheryl Kahla.

READ MORE HERE: Finance minister puts dampener on ANC’s R73 billion ‘wish list’