'Targeted cuts', possible retrenchments ways govt can save money, Treasury tells MPs

CAPE TOWN - The National Treasury has presented various ways government can save money, including "targeted cuts" to certain departments and possible retrenchments.

Officials from Treasury’s government Technical Advisory Centre (GTAC) briefed the Standing Committee on Appropriations on Wednesday on spending reviews conducted during the past five financial years.

GTAC and Treasury's submission also included suggestions around budget cuts and savings for national departments, like buying buildings for foreign missions instead of leasing them.

National Treasury officials presented a list of areas government could make meaningful savings, like targeting the exorbitant rentals the state has to pay for its leased buildings.

The presentation by the GTAC in Treasury also said that "targeted cuts seek to eliminate lower priority programmes". 

It said that "elimination implies the closing of programmes and possible retrenchments".

Treasury acting DDG for public finance, Rendani Randela, said that targeting areas like foreign missions could also save the state a bit of money.

"We have got around 125 missions in 107 countries, if I’m not mistaken, and so far, 10 missions have been closed down and this is work in progress but some savings have been identified there."

Government Technical Advisory Centre acting head, Ronette Engela, told the committee that one of the targeted areas for savings was office rentals and vehicle fleets, especially in the police department.

She also noted how growth in the number of public entities, which grew from 100 to 279 from 1999 to 2019, had resulted in an expansion in the cost of running government.