Treasury warns that South Africa’s grant system could become unsustainable

Treasury warns that South Africa’s grant system could become unsustainable

The National Treasury says it is sympathetic to the current pressures on grant beneficiaries but has warned that the current system could become unsustainable.

In a presentation to parliament on Friday (19 November), Treasury noted that 46% of the entire population currently receives social grants , representing an unusually high coverage for a developing country. If job creation continues to be poor, the sustainability of the system and the overall fiscal position will become a serious concern, it said.

“There are already 27.8 million people in the system receiving grants, 9.4 million receiving the Social Relief of Distress grant. Increasing grants […]

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