Increase SRD grant to R700, says Institute for Economic Justice

In addition, the IEJ suggests a wealth tax which would involve levies on high-income earners and adjustments to their tax rebates, creating a more equitable taxation system. Another potential revenue stream suggested by the IEJ is increased duties on dividends and estates. These measures would be designed to raise funds without hurting the broader, lower-income population.

By focusing on income generated from wealth rather than consumption, the government could help ease the tax burden on the working class while ensuring continued funding for vital social services.

The government has already taken steps to adjust the SRD grant, with finance minister Enoch Godongwana announcing a R20 increase, bringing the grant to R370 a month. However, many critics, including the IEJ, argue that this increase is insufficient, given the rising cost of living and deepening poverty in the country.

The Sunday Times last year reported budget cuts were implemented for departments. The National Treasury had issued a cost-containment memorandum at the end of last August urging departments to curb spending. This after the Western Cape education MEC David Maynier confirmed that 2,400 teaching posts would be cut in 2025 due to a R3.8bn budget shortfall over the next three years.

Social development and welfare programmes, including grants like the SRD, form a significant part of South Africa’s national budget.

This year about 60% (or R3.7-trillion) of this will be spent on social services, which will pay the salaries of teachers, nurses and doctors, and will also pay for social grants. About 19.7-million people will receive social grants by March 2027.

While the increase to R370 is a positive step, many argue more needs to be done to address the growing disparities in wealth and ensure that all South Africans have a basic standard of living.

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