FINANCE Minister Enoch Godongwana made major cuts to social grants over the next three years to finance the extension of the Social Relief of Distress (SRD) grant for a year.

The cuts will affect over 8 million South Africans on the SRD grants and millions more on other types of grants.

During his 2025 budget speech innie Kaap yesterday, Godongwana said the cuts had to be made after the decision to raise the Value Added Tax (VAT) by two percent was scaled back to a 0.5% increase for the next two years.

Godongwana said the social grants were allocated a staggering R284.7 billion in the new financial year.

The grants will be increased as follows in April: The old age and disability grant increase by R130 to R2 315; Child support grant rises by R30 to R560 a month; and the foster care grant increases by R70.

However, a closer look at the Budget Review document tabled yesterday showed that the social grants were severely cut when compared to the documents presented at the postponed February speech.

This was despite the Budget Review stating that R422.3 billion has been allocated for social development services this financial year and will increase to R452.7 billion in two years’ time.

It said the social grant spending made up 81% of the allocation and that the number of social grant beneficiaries, excluding the social relief of distress grant, is expected to rise from 19 million in 2025-26 to 19.3 million in 2027-28, due to the growing population of older people.

Meanwhile, dop, entjies and vaping products will be more expensive from 1 April.

Government proposes to increase excise duties on alcoholic beverages by 6.75% for 2025/26, with a 4.75% increase in tobacco excise duties for cigarettes, cigarette tobacco, and electronic nicotine delivery systems (vaping). The proposed increase for pipe tobacco and cigars is 6.75 percent

For infrastructure and service delivery projects, R2.95 trillion will be allocated towards provinces and municipalities over the medium-term expenditure framework (MTEF) period.