The medium-term budget policy statement, originally scheduled for October, has been rescheduled to be tabled on 1 November.
Although no official document has been released, media reports and statements from union officials suggest that Finance Minister Enoch Godongwana’s draft proposal includes several cost-cutting measures, such as:
- Implementing a 15% reduction in departmental spending.Halting the hiring of new employees, except in cases where offers of employment have already received approval from the National Treasury and the Department of Public Administration and Services (DPSA).
- Freezing the advertising of procurement for all infrastructure projects unless sanctioned by the Treasury.
- Restricting non-essential travel unless it is funded by non-government resources.Suspending expenditures related to catering, workshops, conferences, and other uncontracted goods and services.
- Ensuring the full implementation of spending review recommendations by 31 March 2024, unless otherwise agreed upon with the Treasury.
- Trimming the Department of Social Development’s social assistance programme to achieve a saving of R253 million.
- Closing the already understaffed and under-equipped visible policing programme of the SA Police Service to save R52.1 million.
- Shutting down the Mine Health and Safety Inspectorate to save R233 million.
- Discontinuing the oceans and coasts programme, resulting in a saving of R486 million, but impacting Operation Phakisa.
- Closing the maritime transport programme, which would save R379 million.
The Medium-Term Budget Policy Statement plays a critical role in setting government policy objectives and priorities. It also forecasts the macroeconomic trajectory and outlines spending and revenue estimates, among other things, for the next three years. An engagement session to discuss the logistics of the MTBSP will take place on 20 September.
