Prolonged budget debate stalls social grants increase

The prolonged budget debate in the National Assembly has delayed plans by the government to increase the country’s social grants, which were set to take effect by 1 April.

Executive director of gender equality, poverty eradication and social welfare Martha Mbombo confirmed the delay in a recent statement, which was shared on the ministry’s Facebook page.

“As a result, the budget for the 2023/24 financial year has not yet been approved. Therefore, the grant increase could not take effect as of 1 April 2023,” she says.

Mbombo says the increase will take effect after the appropriation bill is enacted, upon which the pension payout will be backdated.

The budget statement for the 2023/24 financial year made provision for an increase in the monthly old-age, disability and orphan and vulnerable children grants.

Mbombo says this is to guard against the erosion of purchasing power.

“As a result, beginning on 1 April 2023, the old-age and disability grants will be increased from N$1 300 to N$1 400 per month, while the orphan and vulnerable children grants will also be increased,” she says.

Minister of gender equality, poverty eradication and social welfare Doreen Sioka yesterday said pensioners would get their money backdated from April.

“There is no way the money will dodge them. The money has been allocated already as per the finance minister. They will get it,” Sioka said.

‘PENSIONERS’ REACTION’

Loide Richard, a pensioner from Omadiva village in the Oshikoto region, says she is disappointed that the government led pensioners to anticipate an increase in April without notifying them of the circumstances.

She says she was excited about the increase and hoped the additional amount could be used to buy something for the nine children she looks after.

“You cannot tell a blind person you can give them sight. We felt bad about this, because, in my case, I was already planning that I would buy maize meal cheaply that month and maybe add sugar, but it was a lie,” Richard says.

She says the government failed to properly communicate on the matter.

“The N$100 extra is not even enough to solve any problem. We pensioners need at least N$2 000 per month, because we have so many responsibilities. We take care of many grandchildren,” she says.

Richard says although she appreciates the government taking care of pensioners and vulnerable children, many vulnerable children still receive no grant from the government.

“I suggest that the government give that extra N$100 of both pensioners and vulnerable children to those children who receive nothing from the government,” she says.

Another pensioner, who prefers to remain anonymous, from Onanduli village in the Ohangwena region says she learned about the grant increase on the radio, but was not aware of the delay.

“It is bad because all those years we did not get any increment. I was anticipating to get that extra N$100, but my fellow pensioners told me they heard rumours we are only getting an increase in July or August,” she says.

“The money is never enough for everyone – even those who get a lot. But I am thankful to our government for what it is doing for us. It is better than nothing,” she says.