Nene announces spending cuts
Cape Town - Finance Minister Nhlanhla Nene has announced measures to contain expenditure and narrow the budget deficit as the country grapples with stunted economic growth and a shortfall in tax revenue.
In his first Medium Term Budget Policy Statement since his appointment in May, Nene told parliament that government planned to raise at least R20 billion via the sale of non-strategic assets to plug the funding gap in power utility Eskom.
Nene said Eskom would be allowed to borrow R250 billion over the next five years.
Among his spending cuts is the slashing of national government department’s planned expenditure on travel and subsistence by R555 million and a cut in advertising and communications budgets by R240 million.