By Thobile Jiwulane
Presenting his 2025 Budget Speech in Parliament today, Minister of Finance Enoch Godongwana has announced that the social grants are allocated R284.7 billion in 2025/26. He said this would allow for increases to the old age and disability grants by R130 to R2 315 in April. The Child Support Grant by R30 to R560 per month and the foster care grant by R70.
The COVID-19 Social Relief of Distress (SRD), in its current form, will be extended by a year to end March 2026. R35.2 billion is allocated for this purpose. As announced by the President in the State of the Nation Address, the SRD will be used as a basis for the introduction of a sustainable form of income support for unemployed people. The future form and nature of the SRD will be informed by the outcome of the review of active labour market programmes. This is expected to be completed by September 2025,” Godongwana said.
He said to raise the revenue needed, the government proposes to increase the VAT rate by half- apercentage point in 2025/26, and by another half-a-percentage point in the following year. This will bring the VAT rate to 16 per cent in 2026/27.
Izinto ezingazokuba nayo i-VAT xa uthenga ezongeziweyozezi zilandelayo: canned vegetables, dairy liquid blends, and organ meats from sheep, poultry and other animals. Nayo irhafu ye petrol okanye amafutha ayizokwenyuka yohlala injalo kulo nyaka.
“Government also proposes no inflationary adjustments to personal income tax brackets, rebates and medical tax credits. These measures will raise R28 billion in additional revenue in 2025/26 and R14.5 billion in 2026/27,” Godongwana said. (Read more details in 2025 Budget Speech). – NewsS
Download 2025 Budget Speech below.