MTBPS23 – SA’s “social wage” spending massively outperforms peers

By Alec Hogg

Treasury documents disclose that Pretoria now allocates 61% of its non-interest spending to the “social wage” – defined as health, education, housing, social protection, transport, employment and local amenities. 

The COVID-19 relief grant will continue until after the election at which time the government has instructed Treasury and the Department of Social Development to conduct a “comprehensive review” of the entire social grant system. 

Almost a trillion rand is now spent annually on social grants which relative to the size of the economy, as the table below reflects is easily the highest of South Africa’s developing country peer group.  

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