Pretoria – Minister in the Presidency Collins Chabane says the implementation of several cost-cutting measures with regards to state spending has begun.
Finance Minister Pravin Gordhan in the Medium Term Budget Policy Statement announced that no new state credit cards would be issued and existing ones would be cancelled immediately.
He also announced standardising the cost limits for official cars, stopping compensation for use of personal cars, limiting ministers to travel business class instead of first class, limiting business class travel for government officials, better contract management and developing guidelines to limit non-essential costs in advertising.
Briefing media in Cape Town on Thursday, following a Cabinet meeting, Chabane said there were various elements to the cost-cutting exercise. “All of them will be triggered once the legal and formal processes are concluded but never the less implementation has been started.”
Some of the cost-cutting measures are guided by regulations and National Treasury needs to publish guidelines to departments, others need to be gazetted and there are time periods involved, he explained.
“But nevertheless on the credit card side, those guidelines have already been sent out for comment, I’m not sure of the time periods, but once that period has lapsed Treasury will send out the final ones.”
Chabane said while these processes needed to take place, there was a decision that has been made and it would not be reversed. “Everybody who has got a credit card is advised to discontinue it.”
The Amendments to the Treasury Regulation on the issue of the credit cards were published for public comment on Thursday. – SAnews.gov.za
