Cost-containment measures welcomed

Thursday, March 3, 2016

Pretoria – Cabinet has welcomed the cost-containment measures announced by Finance Minister Pravin Gordhan in the 2016 Budget Speech, describing them as decisive.

The Minister, who delivered the budget on 24 February 2016, announced wide-ranging cost-containment measures, which included a freeze on non-critical vacancies of administration and managerial posts.

The Minister said government will reduce its expenditure ceiling by R10 billion in 2017/ 18 and by R15 billion in 2018/ 19 to respond to new spending needs.

The reductions have been distributed to compensation budgets across national and provincial government.

“Cabinet further welcomes the decisive cost-containment measures and commits to working together with all sectors in contributing towards a collective national effort to implement the course set by the budget,” said a statement released on Thursday after Cabinet’s ordinary meeting.

Cabinet said the budget demonstrates the country’s resilience, commitment and resourcefulness as it navigates through the worst economic period in recent history.

“The budget responds to what the country needs and creates confidence in the economy by placing the country on a credible, sustainable and viable inclusive economic growth path,” it said. – SAnews.gov.za

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