Finance Minister Enoch Godongwana announced key adjustments to social grants and government spending in the 2025 Budget Speech, including a R120 increase in the old age grant and an extension of the Social Relief of Distress (SRT) grant until March 2026.
SRT Grant Extended, Job Seeker Allowance Under Consideration
The SRT grant, introduced as a temporary relief measure, will remain in place until March 2026. However, the minister clarified that this does not signal its permanent discontinuation. Instead, the government is exploring ways to integrate the grant with employment initiatives, including a potential job seekers allowance.
“Our goal is not only to provide immediate relief but also to create pathways to employment, empowering citizens to build better futures,” Godongwana said.
Defense Budget Adjusted Amid DRC Withdrawal
Following South Africa’s planned withdrawal from the SADC mission in the Democratic Republic of Congo (DRC), the defense budget has been reconfigured. Originally, R5 billion was allocated for the mission, but due to withdrawal costs, R3 billion has been shifted to cover the safe return of troops and equipment in the current financial year.
Elections and Public Safety Funding
A total of R1.44 billion has been allocated for the upcoming local government elections. This includes:
-
R885 million for the Independent Electoral Commission (IEC)
-
R550 million for the South African Police Service (SAPS) and the South African National Defence Force (SANDF) to maintain public order
“This investment ensures that every South African can exercise their democratic right to vote in a safe environment,” the minister stated.
Unfunded Priorities and Future Considerations
Despite the allocations, some critical areas remain unfunded, including:
-
The withdrawal of PEPFAR (US-funded AIDS relief) support, which the health department is still assessing
-
Infrastructure projects under the Budget Facility for Infrastructure
-
Political party funding (though Parliament may address this separately)
-
Royal household expenses
Transnet Debt Refinancing
The government is considering guarantees to help Transnet refinance its debt and sustain capital investment programs.
Economic Challenges Persist
Godongwana acknowledged South Africa’s economic struggles, noting that weak growth has reduced tax revenue while increasing social spending demands. “When an economy underperforms as ours has, it generates less revenue while requiring more spending, widening deficits,” he said.
The budget reflects difficult trade-offs, prioritizing immediate needs while deferring some expenditures until fiscal conditions improve.