Godongwana cuts R68bn from government spending as VAT remains at 15%

THE National Treasury is set to implement a significant reduction in government spending totalling R68 billion over the next three years.

- SIPHELELE DLUDLA

This decision follows an extensive spending review of R300bn, aimed at addressing inefficiencies in public expenditure as the country grapples with fiscal constraints in the absence of new tax revenue.

Tabling the 2025 Budget Review before Parliament on Wednesday, Finance Minister Enoch Godongwana emphasised that the government's strategy prioritised fiscal discipline while simultaneously investing in growth.

The reviews identified billions in potential savings from underperforming programmes, allowing for redirecting funds towards more effective initiatives.

Godongwana said the National Treasury's strategy of maintaining fiscal discipline while investing in growth demanded that it prioritised high-impact expenditures, those that deliver economic returns while eliminating inefficiencies, wastage and leakage that too often plague government's spending.

"To tackle this, the National Treasury has undertaken expenditure reviews looking at more than R300bn in government spending since 2013, with the aim of identifying duplications, waste and inefficiencies," he said.