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Govt targets more savings

Feb 19 2010 12:31

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Cape Town - Government has identified possible savings of R56.2bn at national and provincial level over the next three years.

It would seem that the gravy-train days of public officials are numbered.

These are the findings of a task team put together, following the medium-term budget, to find areas where government can save money, especially in light of the almost-R70bn revenue shortfall .

At provincial level, R15.4bn can be saved within the next year. Savings of R8.4bn have been identified at national level from October, which could bring total savings for the year to R23bn. Real growth over the next three years will be about 2% a year, said Finance Minister Pravin Gordhan in his first budget address.

Too often, he said, the culture of the public service and government institutions is to consistently increase salaries, spend money on frills, travel in luxury and spend more on marketing companies than on fixing service delivery.

This year Gordhan will, together with Minister Collins Chabane's department in the Presidency tasked with monitoring and evaluation, institute a comprehensive investigation into several key expenditure areas to root out inefficient programmes.

A reduction of certain state entities and agencies is also on the cards.

- Sake24.com

For more business news in Afrikaans, go to Sake24.com.

 
 
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