The sixth administration is on course to prudently manage government expenditure while retaining the focus on infrastructure, health, education and policing as critical areas of growth and development.
This is according to President Cyril Ramaphosa who was responding to Questions for Oral Reply in the National Assembly on Thursday.
Leader of the opposition party (Democratic Alliance), John Steenhuisen asked the President the reasons for the drastic budget cuts to government departments, which will have an impact on government’s delivery of frontline services at a time when citizens are being battered by the cost-of-living crisis.
The President highlighted that the Minister of Finance tabled the Medium-Term Budget Policy Statement (MTBPS) on Wednesday, which outlined the country’s fiscal position and provided information on government’s spending priorities over the next three years.
“Among other things, the Minister of Finance indicated in the MTBPS that we are resolved to stabilise public finances while maintaining support for the most vulnerable and protecting frontline services.
“At the same time, we are fast tracking growth-enhancing reforms, which includes a new financing mechanism for large infrastructure projects. Work is underway to reconfigure the structure and size of the state, while strengthening its capacity to deliver quality public services,” the President said.
President Ramaphosa told Members of Parliament that the cost containment guidelines issued by the National Treasury give advice and guidance to government departments to ensure a sound and prudent management of public finances in the context of significant constraints.
“The increase in fiscal constraints is mainly due to reduced revenues. The cost containment guidelines target non-critical spending items such as travel, catering, accommodation and capital items that have not yet commenced,” he said.
Turning to the discussions that the President and Deputy President Paul Mashatile have had with Ministers on an ongoing basis, President Ramaphosa said the meetings are focused on how programmes and activities undertaken by departments advance economic growth, social development and service delivery.
“Ministers and their departments engage with National Treasury on how best to implement any budget restructuring and delay projects where necessary without compromising the needs of communities,” he said. - SAnews.gov.za
