Finance minister increases social grants

South Africa's Finance Minister Trevor Manuel on Wednesday unveiled a range of poverty relief measures in the country's budget for the next financial year which include extending the child support grant, raising pensions and providing for a food relief fund. Pensions would go up by R60 (US $7.5) to R700 (US $86) and the child support grant would be increased by 14 percent to R160 (US $19) per month from 1 April. The government would phase in an increased eligibility for the conditional grants from the present seven years old to to 14 years old. From April this year, it would include seven and eight-year-olds, nine and 10-year-olds next year and 11 to 13-year-olds the following year. Children would receive further priority through the expansion of the integrated nutrition programme which would be extended to accommodate more pupils and a larger number of schools. For health, over the next three years, R3,3 billion (US $400 million) would go towards extending preventative programmes and finance "medically appropriate" treatment for HIV/AIDS. In addition, over the next three years 18 additional hospitals would be upgraded and refurbished through the hospital revitalisation programme. The budget also provided R1,9 billion (US $235 million) for the acceleration of South Africa's land restitution programme "recognising the critical role that it plays in restoring what rightfully belongs to those formerly dispossessed". The programme would include enhanced agricultural development support. The budget also included provision for municipalities to extend basic service delivery to poor households and for free basic services, including for electricity for these households. Manuel said that while food price inflation had eased somewhat, it remained cause for concern and he hoped that the lower futures price of white maize would be reflected in adjustments to consumer prices. He said the budget accommodated a phased expansion of missions in African countries, funding for the African Union and the New Partnership for Africa's Development (NEPAD) secretariat and increased contributions to regional development through the African Renaissance Fund administered by the Department of Foreign Affairs. Reacting to the budget, three civil society groups, the Basic Income Grant Coalition, the Treatment Action Campaign (TAC) and the Alliance for Children's Entitlement to Social Security (Acess) said not enough was being done for the poor. Acess said the government's decision to phase in the increased ages for the child support grant was disappointing while the TAC said it hoped the government's lack of direction on HIV/AIDS would not force it to civil disobedience, South Africa's news agency Sapa reported. In a statement, the main opposition Democratic Alliance (DA) said while the budget struck a responsible balance between sustained economic growth and social relief, there were still areas of concern. "The DA is alarmed that while professing social spending, the government is again spending on defence. The budget includes provisions for four maritime helicopters and more money for outfitting the first Corvette whilst staggering the implementation of the child support grant increase to 14 years of age and making no provision for [a Basic Income Grant] BIG." The party added that it was alarmed that the budget "again delays" detailed costing for comprehensive HIV/AIDS treatment.