Civil society organisation Save SA believes Finance Minister Enoch Godongwana should have increased the Social Relief of Distress (SRD) Grant to at least R1,200 or R1,500 to better support struggling households.

However, in his budget announcement last week, Godongwana kept the SRD Grant unchanged at R370, despite increasing other social grants, including the old age, war veterans, disability, and care dependency grants, among others.

Godongwana also proposed raising the VAT rate by 0.5 percentage points in both 2025 and 2026, which would bring it to 16% by the 2026/27 fiscal year — a move many fear will disproportionately impact grant beneficiaries.

“When we talk about SRD, you are giving people R370 per month — what can they do with that? It was good that the grant was introduced, but we expected the minister to increase it to at least R1,200 or R1,500,” Save SA spokesperson Tebogo Mashilompane said in an interview with Newzroom Afrika.

Before his budget speech, Godongwana faced backlash from civil society groups, including the Black Sash, after suggesting that a VAT hike wouldn’t be necessary if the SRD grant was reduced.

Mashilompane argued that funds were available to increase the grant but accused the government of failing to tackle corruption.

“The money is there — the problem is that the government is unwilling to address these issues. The tender system is part of the issue. We’re not saying it should be scrapped, but it should only be used when there is no in-house capacity,” he said.

The Black Sash also criticised Godongwana, accusing him of using the SRD grant as leverage to justify a VAT hike.

“To say the SRD grant is the reason he is in trouble now is shocking. As a society, we should be wary of the minister’s language,” the organisation said.

It remains to be seen whether Godongwana’s proposed budget will pass in Parliament, as several political parties, including the Democratic Alliance (DA) — the largest partner in the ANC-led Government of National Unity (GNU) — have rejected it.

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