Answer:
Social grants actually increase consumption of basics such as food and education. The direct effects of the change in grants have higher impacts on poverty and inequality than the indirect effects. This is consistent with the fact that grants form a large part of the income for households living in poverty.
Grant payments redistribute income to poor households and have contributed to a reduction in poverty in South Africa. The social grant net is the government's biggest poverty alleviation and redistribution intervention. There are others, such as government housing provision and free water allocation
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