The Presidency to oversee 2018 national budget allocation
Minister Jeff Radebe says the aim is to align government spending with the National Development Plan.
CAPE TOWN - Minister Jeff Radebe’s Department in The Presidency has taken the lead on determining how next year’s national Budget is allocated after the move was approved by Cabinet.
But the Department of Planning, Monitoring and Evaluation says the introduction of the new framework doesn’t mean it’s competing with National Treasury.
Previously, deciding budget priorities and the size of allocations fell exclusively within Treasury’s domain.
The budget prioritisation document or “Mandate Paper” is supposed to guide how money from the fiscus is allocated.
Radebe says the aim is to align government spending with the National Development Plan.
The minister says his department is working closely with Treasury, adding there’s no mistrust between them.
“Last week, I had to write a letter to the Minister of Finance (Malusi Gigaba) indicating a more detailed aspect of the Mandate Paper, which they’re going to be using in order to do actual budget allocations.”
The Mandate Paper also identifies ways to cut costs, such as putting a cap on how much departments spend on consultants and strict limits on litigation costs.
Radebe says a number of other countries have also complemented their planning instruments with a similar framework to determine priority spending areas.
(Edited by Zamangwane Shange)