Social Grant spending – what is the ANC’s plan?

Johann Krog, MPP

Democratic Alliance KZN

IN 2001 for every 100 people employed one third (33.3%) of the population were receiving government social grant funding.  By 2012 the situation had reversed.  For every 100 people employed – and therefore contributing to the tax pool – 110 were dependent on the state for their income in the form of social grants.

This is clearly an unsustainable match.

A recent publication by the South Africa Institute of Race Relations (SAIRR) shows that between 1994/95 and 2011/12 tax revenue grew by 491%.  During the same time period social grant expenditure grew by 700%.

If this trend continues there will soon be insufficient resources to meet the increasing needs of the vulnerable members of our society, most especially the elderly and our youth, who make up 39% and 37% respectively of the grant expenditure.

There is a crisis looming and the ANC needs to tell the citizens of this country exactly how it plans to deal with it.