Finance Budget 2025: SRD grant extended to 2026 and SASSA grant increased

South Africa’s Finance Minister Inock Godongwana presented the 2025/2026 budget to Parliament on Wednesday. The budget was scheduled to be presented in February but was delayed due to disagreements in the cabinet over a 2% increase in value added tax (VAT).

Finance Minister’s reaction to SRD grant

Before the budget speech, the Finance Minister said that he had proposed to increase VAT because of the SRD (Social Relief of Distress) grant. This grant was introduced during the Covid-19 pandemic and has been extended repeatedly.

Minister Godongwana categorically stated that if he was allowed to end the SRD grant, he would not have to increase other taxes. According to him, many essential expenses have not been included in the budget, causing additional financial pressure.

SRD Grant extended to 2026

In his budget speech, the Finance Minister announced that the SRD Grant has been extended to the end of March 2026. The government has made a provision of 35.2 billion rands to maintain this scheme. This decision has brought relief to millions of needy South African citizens who depend on this assistance.

The repeated extension of this grant shows that the government understands its need and impact. But it is not yet known if this grant will remain permanent in the future or another social security scheme will replace it.

Increase in SASSA Grant

The government has provided a total of 284.7 billion rands for permanent social grants (SASSA Grants) for the year 2025/26. With this amount, different social grants will be increased, giving more assistance to poor citizens.

Hike in grants (will become effective from April 2025):

• Grant for the disabled and elderly – raised by 130 rand to 2,315 rand per month.
• Child support grant – increased by 30 rand, now 560 rand per month.
• Foster care grant – increased by 70 rand.

Budget effects

The increase in social grants in this budget makes it clear that the government is committed to supporting the poor and vulnerable sections. However, the challenge of maintaining economic balance due to increasing government expenditure remains, to meet which measures like increasing taxes are being considered.

Positive effects:

✅ Needy citizens will get additional financial support.

✅ The extension of the SRD grant will bring relief to millions of people.

✅ The elderly and disabled will get more help.

Possible challenges:

⚠ Taxes may be increased in the future to meet the budget deficit.

⚠ No clear plan to make the SRD grant permanent has been announced yet.

⚠ If the economic situation does not improve, social grants may be cut.

Final Conclusion

The extension of the SRD grant and the increase in SASSA grants are the most important decisions in the 2025 budget, which will provide relief to millions of South African citizens. However, the government will continue to face the big challenge of maintaining fiscal balance.

It will be interesting to see in the coming years whether the government makes this SRD grant permanent and how it strengthens the social security system. For now, this budget has brought relief news for the vulnerable sections.

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