Social grants weigh heavily on government coffers

The latest Statistics South Africa figures suggest social grants and a large public service are taking their toll on government coffers. (M&G)

The latest Statistics South Africa figures suggest social grants and a large public service are taking their toll on government coffers. (M&G)

Stats SA's Financial Statistics of National Government report showed the government's cash payments for operating activities rose by R60.5-billion to R791.9-billion in 2010/2011‚ from R731.3-billion in 2009/2010‚ mainly due to an increase in grant payments and compensation of employees.

The seven main economically classified cash payments for operating activity categories are: compensation of employees; purchases of goods and services; interest; subsidies; grants; social benefits and other payments.

The largest contributor to the rise in total cash payments for operating activities was grants‚ at R468.9-billion, followed by social benefits at R91.4-billion and compensation of employees at R87-billion.

South Africa's tax base continued to come to the rescue in the 2010/2011 financial year‚ figures suggested.

An increase mainly in collected taxes led to a R76.8-billion rise in government's cash receipts from operating activities to R688.3-billion. – I-Net Bridge

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