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South African regions where people depend more on subsidies than salaries

Statistics South Africa has released a 2020 General Household Survey, which outlines the state of the country and its people. One of the key findings of the survey is that many of the population is heavily dependent on grants, with more than a quarter of respondents currently relying on grants as their primary source of income.

This number increased significantly in 2020, primarily due to the Covid-19 pandemic, from 20.4% of the population in 2019 to 28.8% in 2020.

By comparison, half (50.8%) say they depend on salaries and wages as their main source of income, while 8.8% say they depend on remittances from friends and family.

This shift in dependence on grants is most pronounced in Eastern Cape, Limpopo, and Free States, but Gauteng and Western Cape are usually more dependent on work.

Statistics According to South Africa, in 2020, a quarter (25.2%) of all individuals and 40.5% of all households in metropolitan areas will receive some form of social subsidy.

Individual grants received were highest in Buffalo City (32.8%), Mangaun (29%), Nelson Mandelabay and eThekwini (26.7% each), and lowest in Johannesburg (24%) and Tshwane (23.8%). It has become.

A similar pattern is evident in households at the metropolitan level, where data show that one or more social grants were received in Buffalo City (54.2%), Nelson Mandelabay (48%), and Mangaun (42.5%). ) Shows that it is the most common in households. ) And the least common in Tshwane (34.3%) and the city of Johannesburg (39.1%).

Unsustainable

The Treasury had previously warned that the current system could be unsustainable.

In a presentation to Parliament on November 19, the Treasury said: Currently, 46% of the total population is socially subsidized, Represents very high coverage in developing countries. If job creation continues to be inadequate, system sustainability and overall financial position will be serious concerns, he said.

“The system has already received 27.8 million grants and 9.4 million social distress relief grants. To increase grants beyond current levels, the government should prioritize. It requires rigorous decisions at the political level on how to readjust. “

“Population is projected to grow from 60 million in 2021 to 71 million by 2040, resulting in children’s social grants, old-age pension grants, basic education and health-dependent children and the elderly. The number of people is increasing. The increase in spending required by the government will put pressure on financial sustainability. “


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South African regions where people depend more on subsidies than salaries

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