DA calls for review of govt spending ahead of medium-term budget

Finance Minister Malusi Gigaba is set to deliver his inaugural medium-term budget policy statement in Parliament on Wednesday.

Finance Minister Malusi Gigaba is set to deliver his inaugural medium-term budget policy statement in Parliament on Wednesday. Picture: Christa Eybers/EWN.

CAPE TOWN - The Democratic Alliance says Finance Minister Malusi Gigaba needs to act now to cut wasteful government spending and is also calling for civil servants’ salaries to be frozen.

The party also says Gigaba should launch a comprehensive review of government spending.

Gigaba is set to deliver his inaugural medium-term budget policy statement in Parliament on Wednesday.

He’s dealing with an economy that isn’t growing, a revenue shortfall, massive demands on the public purse and rising government debt.

The DA’s David Maynier says a 6% a year “haircut” on government spending and freezing government employees’ salaries will save billions.

“The savings that arise from mandatory cost-containment measures over three financial years is only 0.39% of total consolidated expenditure in 2017/18”

The DA says Gigaba should launch a review of government spending.

“The savings identified as a result of a comprehensive spending review should be allocated to fund investment in infrastructure, skills development, to support economic growth and to cut the fiscal deficit in order to reduce national debt and debt service costs over the medium term.”