Govt buying leased properties, closing foreign missions can save billions: Treasury
The National Treasury and its Government Technical Advisory Centre (GTAC) said savings could also be made in the justice, crime prevention, and security cluster by reviewing spending on vehicle fleets that cost the State billions annually.
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CAPE TOWN - A National Treasury spending review has found that the government can save billions by buying some of the properties it leases and shutting down some foreign missions.
The National Treasury and its Government Technical Advisory Centre (GTAC) said savings could also be made in the justice, crime prevention, and security cluster by reviewing spending on vehicle fleets that cost the State billions annually.
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On Wednesday, National Treasury officials briefed the National Assembly’s Standing Committee on Appropriations on spending reviews conducted during the past five financial years.
The discussion on the spending review and government savings comes as the government tries to fill the funding gap in the budget tabled by the minister last week.
National Treasury’s GTAC told the committee that internationally, spending reviews are used to cut expenditures by making “targeted cuts” and creating space for new priorities.
However, the deputy director general responsible for public finances, Rendani Randela, said savings could also be realised in closing foreign missions and buying properties.
“The spending review also reveals that we need to move away from leasing to buying those properties, especially in countries where we’ve got a footprint, and the cost is high.”
He said substantial savings can also be made in screening social grants.
“In the space of child support grants, there were some undeserving grant recipients and a saving of around R1 billion was realised.”
GTAC said, “blanket cuts contained some expenditure growth” but these caused distress in service delivery.