South Africa: Mboweni Tables Wasteful Expenditure Interventions

South Africa's Finance Minister Tito Mboweni delivers his medium-term budget policy statement on October 30, 2019.

The National Treasury has tabled before Parliament a litany of options the state has to consider if it is to improve efficiency and reduce wasteful expenditure.

Among these is the regulation of development charges through the Municipal Fiscal Powers and Functions Amendment Bill, which will be tabled shortly.

Presented by Finance Minister Tito Mboweni today, the "Growth, Sustainability and Renewal" document also recommends that National Treasury endorses the suspension of the implementation of new public transport networks in cities that have been in the planning stage for over a decade with no roll-out of services to residents.

The document also calls for the merging and consolidation of entities and regulatory agencies and disposal of unused land and other assets.

"Initiate work to limit claims against the state, including through a review of medico-legal claims and accelerated implementation of the Road Accident Benefit Scheme," reads the document.

The report also calls on government to manage benefits received by political office bearers, through reforms to the Ministerial Handbook.

The National Treasury in the document also calls for the review of the existing procurement regulatory framework, through the Public Procurement Bill, to simplify procurement processes and governance.

Addressing reporters, Mboweni said the public sector wage bill has shot up dramatically over the years and needed to be addressed.

"We need a conversation with unions on how to moderate the wage bill. I am not saying it is equivalent to cutting; I'm certain we'll find each other when we begin the conversation," he said.

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