Godongwana defends cost-containment measures

Finance Minister Enoch Godongwana defended the proposed cost-cutting measures. Picture: Phando Jikelo/African News Agency (ANA)

Finance Minister Enoch Godongwana defended the proposed cost-cutting measures. Picture: Phando Jikelo/African News Agency (ANA)

Published Oct 19, 2023

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Finance Minister Enoch Godongwana has defended the cost-cutting measures they are proposing, saying they were meant to protect government so they could continue to spend on key projects.

Godongwana said they were expecting lower than expected revenue collection this year.

This has led to government proposing a wide range of cost-containment measures.

President Cyril Ramaphosa also came to the defence of Godongwana and the National Treasury and said cost-containment cannot be likened to austerity measures.

Godongwana is expected to give more details on the cost-containment measures when he delivers his Medium-Term Budget Policy Statement next month.

But when he was replying to a written parliamentary question from IFP MP Inkosi Mzamo Buthelezi, Godongwana said they wanted government to contain spending on key projects for the State.

“In the meantime, and to limit the negative effects of weaker-than-anticipated revenues and more difficult financial conditions, proposed savings and cost-cutting measures are meant to protect the ability of government to sustain spending on its key service delivery priorities,” said Godongwana.

The public sector unions and civil society organisations have opposed Godongwana’s proposal to cut costs across the State.

Some ministers in Cabinet have supported proposed cost-containment measures and said they will not result in a lack of services.

Government will continue to deliver services to the people.

Godongwana also said that over the last three years, government has been focusing on fiscal consolidation.

He said it was their view that fiscal consolidation was able to cushion the State.

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