The Department of Social Development failed to distribute R4.8-billion of its allocated budget for social grants during the 2025/26 financial year. Out of a total budget of R285.9-billion, government spending for the period reached R281.1-billion.
Administrative Hurdles And Grant Allocation
The shortfall was primarily driven by the Social Relief of Distress (SRD) grant, which accounted for R3.1-billion of the underspent amount. Additional variances included gaps of R793-million in old age grants, R533-million in child support payments, and R318-million allocated for disability grants.
Speaking to Parliament’s Portfolio Committee on Social Development on 25 June 2026, Department of Social Development Chief Financial Officer Thandeka Ngcobo attributed the lower spending to improved administrative oversight. “Improved administration and grant approval processes had contributed to lower spending,” Ngcobo stated during the briefing.
Public Interest And Accountability
The government has increasingly utilised biometric and income verification systems to address concerns regarding fraud and the integrity of the national social security register. While these measures are intended to ensure funds reach only the most vulnerable, they have faced criticism from opposition figures who argue that the systems may block eligible individuals from essential relief.
“Government frequently argues that poverty and vulnerability are increasing and that more people need assistance. Yet almost R5-billion was not spent,” said DA MP Nazley Sharif.
The inability to deploy the full budget allocation highlights broader concerns about the efficiency of state social safety nets during a period of sustained economic pressure. Further oversight by the parliamentary committee is expected to determine whether these administrative barriers can be adjusted to maintain system integrity without excluding claimants in need.