Economy class & cellphone caps: Mboweni cuts perks for MPs

Finance Minister Tito Mboweni encouraged MPs to think about how they can further contain their compensation and benefits.

FILE: Finance Minister Tito Mboweni. Pictures: EWN

JOHANNESBURG - No more perks for Members of Parliament and politicians, Finance Minister Tito Mboweni said.

The minister said this was in a bid to curb expenditure.

He painted a bleak picture of the country's economy, saying that without policy adjustments, national debt was likely to exceed 70% of GDP in three years’ time.

This year debt had already passed the R3 trillion mark.

Mboweni encouraged MPs to think about how they could further contain their compensation and benefits.

"The cost of official cars will be kept at R800,000 VAT inclusive. A new cellphone dispensation will cap the amount claimable from the state. All domestic travel will be economy class."

To read his full Medium-Term Budget Policy Statement, click here.

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(Edited by Refilwe Pitjeng)