The National Assembly approved the 2024 Appropriation Bill, which raises social transfers by over R50 billion. This legislative action is intended to allocate cash from the National Revenue Fund (NRF) to cover the state’s financial obligations for the fiscal year 2024/25. Parliament explained that the bill addresses current financial needs and establishes rules for spending funds withdrawn for the fiscal year 2025/26 before the new Appropriation Act begins, among other things. Finance Minister Enoch Godongwana introduced the Appropriation Bill during the February 2024 Budget release.
This bill was accompanied by several other critical financial documents, including the Division of Revenue Bill, the Budget Review, the Second Adjustments Appropriation Bill for the fiscal year 2023/24, the Gold and Foreign Exchange Contingency Reserves Accounts Defrayal Amendment Bill, the National Expenditure Estimates, and the Revenue/Tax Proposals. These were submitted under Section 10(1)(a) of the Money Bill and Related Matters Act of 2009, as modified in 2018.
Parliament approved an additional budget for SASSA under the Appropriation Bill:
Despite being tabled, the 2024 Appropriation Bill expired following the National Assembly’s final meeting before the 2024 general election. The National Assembly reinstated it on July 2, 2024. According to Section 10(7) of the Money Bill and Related Matters Act, Parliament has four months to process the national budget, presented by the Finance Minister at the beginning of the fiscal year. The 2024 Appropriation Bill seeks to find an appropriate balance between budgetary restructuring and development. On average, 60.2% of total non-interest spending will go into the social wage, which includes health, education, social protection, community development, and employment initiatives. Social transfers are expected to increase significantly, from R283.4 billion in the fiscal year 2023/24 to R331.5 billion in 2026/27.
SASSA Basic Income Grant Is Coming?
In addition to financial measures, South Africa’s new Government of National Unity (GNU) promotes a basic income handout. Despite President Cyril Ramaphosa’s declaration that job creation is the most effective way to alleviate poverty, the government has continued to assist the unemployed through various initiatives, including the Social Relief and Distress (SRD) award. This payment, set to become a basic income grant, has served as a critical support mechanism for millions of unemployed South Africans.
Before the elections, the ANC promised to finalize a basic income handout within two years. The SRD grant, extended several times since the outbreak, has been increased by R20 to R370, effective April 1. In the 2024 budget, Finance Minister Godongwana stated that provisional money for the SRD had been given until March 2027. However, academics have expressed worries about the possible burden on state finances if a permanent basic income grant is introduced, particularly considering South Africa’s disproportionate number of taxpayers (7 million) and grant recipients (28 million).