Government to phase out low-priority programmes to improve spending efficiency

FINANCE Minister Enoch Godongwana yesterday said the government will phase out and scale down low-priority and underperforming programmes.

- MAYIBONGWE MAQHINA

Tabling the Medium Term Budget Policy Statement (MTBPS), Godongwana said there will be improved operations across departments and provinces while most expenditure will be directed towards social wage.

"Moderate increases in provinces' and municipalities' share of revenue are intended to alleviate provincial health and education pressures and bolster local basic services, while grant consolidation, performance-based incentives and Targeted and Responsible Savings (TARS) (are intended to) improve spending efficiency.

"Additional local government reforms, which are crucial to establish the sustainable provision of basic services to millions of South Africans, will begin to roll out over the medium term," he said.

Godongwana's comment comes months after there were delays in approving the budget after the DA, a partner in the Government of National Unity (GNU), threatened to protest the VAT increase and demanded some concessions, such as expenditure reviews and cutting wastage in government spend.