Finance Minister Enoch Godongwana said his proposals on cost-cutting measures will be tabled as part of his Medium-Term Budget Policy Statement (MTBPS) later this month.
“The Ministers committee on the budget is in the process of considering the budget proposals to be tabled as part of the MTBPS at the end of October and all information in this regard will only be available at that point,” Godongwana said.
The revised cost containment measures issued by the Office of the Chief Procurement Officer in June 2024, remain in place and guided departments in terms of cost containment, he said.
Godongwana was responding to a parliamentary question from DA MP Farhat Essack, who asked about cost-cutting measures he will introduce in the MTBPS to reduce luxury spending on perks and benefits for Ministers, Premiers and Mayors.
Director-general Duncan Pieterse said government institutions must implement control measures to ensure that all expenditure in their institutions is necessary.
“An accounting officer and accounting authority must ensure that all employees are mindful of the current economic realities and need to intensify efforts to improve efficiency in spending by reducing non-essential expenditure,” Pieterse said.
He stated that consultants should be only used if the required capacity, skills or expertise did not exist in the institution and that value for money was achieved in making use of consultants.
“Consultants must be appointed in accordance with the procurement processes, subject to negotiations.”
Pieterse also said a government institution may host conferences if the related expenditure was at market related rates.
“Employees of institutions may attend conferences hosted by professional bodies and other government or non-governmental institutions held within the borders of South Africa if expenditure related to their attendance is approved by the accounting officer or accounting authority in line with the internal policy of the institution.”
However, Pieterse said expenditure to the conferences must exclude costs related to travel and accommodation.
“An accounting officer and accounting authority must ensure that air travel and accommodation arrangements are in line with the internal policy of the institution.”
He also said institutions should make every effort to take advantage of early registration discounts.
According to Pieterse, a credit or debit card lodged with a travel agency for purposes of payment for travel and accommodation related expenditure may be used as a method of payment for effective and efficient payment of travel related expenditure.
Cape Times