Government's assessment over the last few months on budgeting effectively and efficiently, shows that the state could save R6.7 billion by removing low-priority or underperforming programmes over the medium term.
This is according to the Targeted and Responsible Savings (TARS) initiative, which systematically identifies duplication, eliminates waste, and reorganises programmes to deliver value for money.
"Honourable Members, eliminating waste and inefficiency in government is non-negotiable if we are to maintain public trust that tax money is spent responsibly. We are implementing medium-term savings of R6.7 billion by closing or scaling down low priority and underperforming programmes immediately," Minister of Finance Enoch Godongwana said on Wednesday.
Presenting the Medium-Term Budget Policy Statement (MTBPS) at a sitting of the National Assembly at the Good Hope Chamber in Parliament, the Minister said more than half of this involves identifying people who are double-dipping and defrauding the social grants system.
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"We are also scaling down the public transport network grant. The grant has failed to meet the objective, and some cities have failed entirely to get the projects off the ground," the Minister said.
The reforms that have been identified, coupled with performance-oriented frameworks and stronger oversight mechanisms, are intended to bolster efficiency, protect frontline services and create space to increase spending on government priorities, including growth-enhancing infrastructure.
A programme assessment matrix has been introduced to enable the systematic review of programmes so that departments can identify low-priority or underperforming programmes to be considered by Cabinet for review and rationalisation.
The matrix uses standardised metrics to measure the degree to which programmes:
- Are aligned with legislation and policy, and do not duplicate effort.
- Perform effectively, delivering the desired outputs and outcomes.
- Use resources efficiently, with staffing, administrative overheads, institutional capacity and delivery models that deliver value for money.
- Are financially sustainable, exhibit sound budget discipline and have potential for external funding.
Changes are being implemented in phases in the 2026 Medium-Term Expenditure Framework (MTEF).
Additional measures undertaken in the budget reform process include the following:
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- Implementing the recommendations of the Department of Public Service and Administration's personnel expenditure review.
- Reviewing the sector education and training authorities.
- Assessing incentives managed by the Department of Trade, Industry and Competition.
- Reviewing several local government conditional grants to address inefficiencies in infrastructure service delivery.
- Reducing administration costs, including through expanding the use of transversal contracts - bulk-buying arrangements negotiated by the National Treasury to reduce costs - in high-value areas. - SAnews.gov.za
