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Cape Town - The rate of growth in public spending must be moderated and the pace and quality of service delivery improved, Treasury said in its medium-term budget policy statement (MTBPS) on Tuesday.
"The broadening of access (to services) has not always been accompanied by commensurate improvements in quality, and a focus over the medium term is to improve the quality and pace of service delivery."
Treasury said this thinking was reflected in a R5bn increase in allocations to local government over the medium-term expenditure framework (MTEF).
"Rising allocations to municipalities reflect the need to improve basic services and bulk infrastructure."
Provinces' share has been revised upwards by R20.2bn. The overall adjustment for the three-year period was R48bn, a "marked decrease" from R94.1bn made available in the 2010 MTEF.
The finance ministry called on government departments to reprioritise and adjust baselines to "maximise their impact" in achieving targets.
"Government will support reforms that reinforce result-driven performance while encouraging better planning and budgeting."
Treasury said the budget policy framework took account of the uncertain economic outlook and the need to support structural transformation of the economy.
"To ensure that government can afford its priority programmes now and in future, the rate of growth in public spending needs to be moderated over the medium term, even as public services, economic investment and job creation are strengthened."
The MTBPS called for spending trends to shift from consumption to investment.
"Over the medium-term expenditure framework period ahead and beyond, the composition of spending needs to shift from consumption to investment in infrastructure and economic development."
Treasury said that in preparing for the 2012 MTEF, it had rigorously reviewed spending baselines to identify inefficient and non-priority expenditure.
It also took aim at wasteful expenditure.
"Perceptions that government and its officials are living large undermine public trust," it warned.
"Wasteful public expenditure must be eliminated."
