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From National Treasury budget cuts threaten social relief grants in South Africa

How will the National Treasury's budget cuts affect the Department of Social Development?

Department of Social Development faces exclusionary regulations due to budget cuts Budget cuts by the National Treasury have led to the watering down of the Social Relief of Distress (SRD) grant and the implementation of exclusionary regulations. These regulations directly guide the Department of Social Development, determining who is deemed poor enough to receive the grant. This action occurs while the National Treasury and the Department of Social Development are actively challenging a High Court ruling that had previously declared the grant regulations unconstitutional and invalid.

Reported by 1 independent outlet Written Oct 7
Effect
Strong negative
How direct
2 steps, all reported
When
Over the long term
The story
Gone quiet

How it reaches Department of Social Development

Reported by news outlets

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The facts so far

As reported. Each one links to where it comes from.

  • The High Court in Pretoria declared the SRD grant regulations unconstitutional and invalid and ordered the government to adjust it to keep pace with the cost of living.dailymaverick.co.za
  • The finance minister, through National Treasury, has successfully watered down the SRD grant through budget cuts.dailymaverick.co.za
  • National Treasury is the ultimate decider of who gets a grant and who does not.dailymaverick.co.za
  • National Treasury and the Department of Social Development are actively challenging the court ruling.dailymaverick.co.za

Why it matters

The SRD grant is crucial for millions of South Africans, allowing them to access a level of dignity, put food on the table, and search for jobs. The ability to provide this basic support is fundamental to laying the foundation for a Basic Income Grant (BIG) and ensuring livable conditions for the poor.

This situation highlights a conflict between political promises, such as those made by the ANC, and the practical constraints of government finance. The Department of Social Development is caught between constitutional court rulings demanding adjustments and the National Treasury's efforts to diminish the grant's likelihood through exclusionary regulations.

What we don't know yet

  • What will be the outcome of the Department of Social Development and National Treasury challenging the High Court ruling?
  • What specific exclusionary regulations are currently being used to determine grant eligibility?

What would change this answer

The High Court upholds its ruling against the grant regulationsThe Department of Social Development would be legally compelled to adjust the grant to keep pace with the cost of living, mitigating the negative impact of the budget cuts.
National Treasury successfully implements a progressive policy to fund the BIGThe focus would shift from the exclusionary SRD grant regulations to the implementation of a new, more comprehensive basic income system.

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The full eventNational Treasury budget cuts threaten social relief grants in South Africa Everything aboutDepartment of Social Development

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