But More Support for Workers and Social Grants
CAPE TOWN:- Finance Minister Enoch Godongwana delivered the 2025 budget speech, bringing both good and bad news for South Africans.
The Good News
- More money for social grants – The government is increasing payments:
- Old-age and disability grants go up by R130
- Child support grants rise by R30
- Foster care grants increase by R70
- Public sector jobs saved – Extra funding will keep 9,300 healthcare workers and 800 post-community service doctors employed. Schools also benefit, with R19.1 billion set aside to keep 11,000 teachers in classrooms.
- Support for local car manufacturing – The government is investing R1 billion to help South Africa produce more electric vehicles (EVs), aiming for a cleaner future.
The Bad News
- VAT will increase – From May 1, 2025, VAT will rise by 0.5%, followed by another 0.5% hike in 2026, making the final rate 16%. This will raise the cost of living for many.
- Less money for Eskom – Eskom’s debt relief was cut by R20 billion, meaning the power crisis may not improve as quickly as hoped.
What This Means for You
The government is trying to balance economic challenges with social support. While the VAT increase will affect prices, the rise in grants and job retention efforts may help struggling households.
South Africans will have to budget carefully in the coming years as these changes take effect.
