Extending South Africa’s R350 grant by another year to cost taxpayers R35 billion: economist

Extending South Africa’s R350 grant by another year to cost taxpayers R35 billion: economist

It is now the base case view that the Social Relief of Distress (SRD) grant will be extended for at least the 2022/23 fiscal year, says Jeff Schultz, senior economist at BNP Paribas South Africa.

This comes as the country’s revenue collections continue to outstrip expectations by as much as 1% of GDP compared with the November mid-term budget estimates the National Treasury had projected, Schultz said in a research note on Tuesday (25 January).

Finance minister Enoch Godogwana has previously indicated that any SRD extension would be contingent on further upsides to the country’s revenue performance.“Deteriorating socio-economic conditions, rising joblessness […]

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