Business Report

How the government saved R170.7 million through SASSA grant cancellations

Mthobisi Nozulela|Published
Minister of Finance Enoch Godongwana has revealed that the government has cut R170.7 million in social grant spending

Minister of Finance Enoch Godongwana has revealed that the government has cut R170.7 million in social grant spending

Image: Supplied

Minister of Finance Enoch Godongwana has revealed that the government has cut R170.7 million in social grant spending thanks to the Targeted and Responsible Savings (TARS) programme.

The minister made this disclosure in a parliamentary reply after DA MP Kingsley Wakelin asked the Treasury about the impact of the programme on departmental performance and service delivery outcomes.

Godongwana said the Targeted and Responsible Savings measures have so far been applied only to two programmes, social grants, through verification checks by the South African Social Security Agency (SASSA), and the Public Transport Network Grant.

He said that by December 2025, SASSA had reviewed 291,581 grant beneficiaries, adjusted 8,599 grants, and cancelled 34,661 grants, resulting in total savings of R170.7 million.

"The budget savings take effect in 2026/27. However, the conditions placed on SASSA have yielded the following by December 2025: six million bank accounts and eight million credit bureau clients checked, 291,581 grant beneficiaries flagged for review, 8,599 disability and old-age grant recipients adjusted, saving R36.4 million, and 34,661 grants cancelled, saving R170.7 million." Godongwana said.

The minister also said that the Department of Transport is reviewing its approach to road-based public transport and plans to develop a new action plan in line with updated legislation and urban rail policy.

"In the case of the Public Transport Network Grant, the Department of Transport is embarking on a revised strategy for road based public transport. Together with amendments to the National Land Transport Act and the policy vision set out in the White Paper on Rail for urban commuter rail, a new action plan is expected to be developed".

IOL previously reported that the Department of Social Development says the South African Social Security Agency (SASSA) is spending R31 million every month on disability social grants as the government moves to strengthen social protection for vulnerable citizens.

[email protected]

IOL Business

Get your news on the go. Download the latest IOL App for Android and IOS no