BUDGET 2005/06
Social security grants increased
Richard Mantu
23 February 2005
Finance Minister Trevor Manuel has announced increases in social security grants to benefit the poor, those living with disabilities and vulnerable children.
As of April this year, pensioners, the disabled and the care-dependent will receive an additional R40, which will see recipients taking home R780 a month.
Delivering his Budget Speech in Cape Town on Wednesday, Manuel said the foster care grant would increase by R30 to R560 a month, while the child support grant would increase to R180 a month.
These increases will have a major impact on the income security of the most vulnerable, particularly in support of children under the age of 14.
Manuel said, however, that the expansion in the distributive thrust of the grants carried costs.
"Of the R74-billion in additional allocations over the 2004-06 medium term expenditure framework, a total of 30% is added to the social grant programmes, bringing aggregate social security
spending to R55.4-billion next year and to 12.7% of consolidated spending by 2007/08."
Manuel said the increase in social spending was made possible by the strength of the economy and stronger tax collection, with the Treasury projecting to raise R11-billion more than budgeted for in the 2004/05 financial year.
Source: BuaNews
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