South Africa, February 21, 2024 – Finance Minister Enoch Godongwana presented the much-anticipated Budget Speech 2024, outlining key proposals that will impact citizens across the nation. Here are the highlights from this crucial address:
1. Social Grant Adjustments:
Minister Godongwana addressed the need to keep pace with inflation and increase accessibility, announcing a notable increase in permanent social grants. Old age, war veterans, disability, and care dependency grants will receive a R100 boost, with R90 effective from April and R10 from October. Foster care grants will see a R50 increase, and child support grants will get an additional R20.
2. Excise Duty Changes for Alcohol and Tobacco:
The budget proposes above-inflation increases in excise duties for alcohol products. This translates to slight price adjustments across various beverages, including beer, cider, wine, fortified wine, sparkling wine, and spirits. Tobacco excise duties also rise, impacting the prices of cigarettes, cigar tobacco, pipe tobacco, and cigars.
3. Extension of the R350 Social Relief Grant:
In response to ongoing challenges, the government has allocated R33.6 billion to extend the R350 social relief of distress (SRD) grant until March next year. Minister Godongwana hinted at potential further increases, stating that work is underway to improve the SRD grant by April this year.
4. Other Social Grant Increases:
Beyond the R350 grant extension, Minister Godongwana announced increases in various social grants. This includes adjustments to old age, war veterans, child support, care dependency, foster care, and disability grants, demonstrating a commitment to supporting diverse sections of the population.
5. Social Wage and Future Plans:
Minister Godongwana emphasised the significance of the social wage, with 60% of government spending, after servicing debt, allocated to it. While the budget review document didn’t explicitly mention a basic income grant, there are commitments to provisional allocations for the SRD grant until 2027. The minister also suggested ongoing efforts to finalise social security policy reforms.
6. Alcohol and Tobacco Price Impact:
As part of the budget proposals, consumers can expect slight increases in the prices of alcoholic beverages and tobacco products. For instance, a can of beer will go up by 14 cents, while a bottle of spirits, including whisky, gin, or vodka, will increase by R5.53.
Here’s a list of price increases and decreases:
Social Grants:
- Old Age Grant: Increase of R100 (New Price: R2,185)
- War Veterans Grant: Increase of R100 (New Price: R2,205)
- Child Support Grant: Increase of R25 (New Price: R530)
- Care Dependency Grant: Increase of R100 (New Price: R2,185)
- Foster Care Grant: Increase of R55 (New Price: R1,180)
- Disability Grant: Increase of R100 (New Price: R2,185)
Alcohol Products:
- Beer: Increase of 14 cents
- Cider/Fruit Beverage: Increase of 14 cents
- Wine: Increase of 28 cents
- Fortified Wine: Increase of 47 cents
- Sparkling Wine: Increase of 89 cents
- Spirits (Whisky, Gin, Vodka, Brandy): Increase of R5.53
Tobacco Products:
- Cigarettes: Increase of 97 cents
- Cigars: Increase of R9.51 cents
- Pipe Tobacco: Increase of 57 cents
The Minister announced that there would be no increases in the General Fuel Levy for the 2024/25 financial period.
In conclusion, the 2024 South African budget reflects a balancing act between addressing immediate needs, supporting vulnerable populations, and managing economic challenges.
As these proposals come into effect, citizens are encouraged to stay informed and adapt to the evolving financial landscape.
