Finance Minister Enoch Godongwana has revealed that the social wage will account for 61% of total non-interest spending over the medium term.
This includes spending on social protection, health and education, among other areas. These are expected to reach R1.3 trillion in the 2025/26 financial year.
“Over the MTEF period, the primary surplus continues to grow, meaning that revenue will continue to exceed non-interest expenditure. In time, this growing surplus will reduce the growth of debt-service costs,” said Godongwana.
The May budget shows no changes to social grants, which remain at R35.2 billion for the 2025/26 financial year.
Social relief grants extended to March next year
This includes an increase of R1.6 billion to fund the R370 Social Relief of Distress (SRD) grant, which has been extended to 31 March 2026.
Godongwana said the government is planning to integrate the SRD grant with employment opportunities.
“This includes considering a job-seeker allowance and other measures, as part of the review of Active Labour Market Programmes.
“Our goal is to not only provide immediate relief. It is also to create pathways to employment, empowering our citizens to build better futures for themselves and their families,” said Godongwana.
Old age, disability remain unchanged
The old age grant, disability grant, and care dependency grant remain at R2 315. War veterans will receive R2 335, foster care grants are set at R1 250, and the child support and grant-in-aid remain at R560.
“Social assistance grants receive an above-inflation increase in 2025/26, as well as technical adjustments effected between the two grants in the second and third year of the MTEF. As such, the old age grant increases by R4 billion, and the disability grant decreases by R2.8 billion,” said Godongwana.
From the social wage, the health sector will receive R20.8 billion to help address shortages in staff and essential supplies.
This funding will support the hiring of at least 800 doctors who have completed their community service, the creation of 4 700 health posts, and the purchase of medical goods and services to cover backlogs.
Billion goes to health facility construction
He also announced that R1.4 billion will go towards the construction of Siloam Hospital and the implementation of public-private partnership health technology at Tygerberg Hospital over the next three years.
In education, R5.3 billion has been allocated to the Education Infrastructure Grant. However, there is a reduction of R3.5 billion to the indirect component of the School Infrastructure Backlog Grant, as it has now been included under the broader infrastructure backlog.
The Infrastructure and Efficiency Grant for Technical and Vocational Education and Training (TVET) colleges will rise by R218.2 million in 2026/27 and by a further R678.2 million in 2027/28.
“Transfers to sector education and training authorities over the period ahead are reduced by R2.4 billion and transfers to the National Skills Fund are reduced by R591.1 million,” said Godongwana.
Almost R20 billion to education in provinces
Provincial education departments will receive R19.5 billion to employ at least 5 500 teachers and improve the quality of Early Childhood Development (ECD).
The ECD subsidy will increase to R24 per child per day, up from R17, where it had remained since 2019.
An additional R10 billion has been allocated to help 700 000 children up to the age of five gain access to ECD services over the medium term.
