Departments told to save

Cape Town - Minister of Finance Pravin Gordhan has urged departments to disclose any savings they have identified in the 2009/10 financial year.

The Democratic Alliance recently asked Gordhan whether National Treasury had issued instructions to the departments regarding reducing expenditure with a view to the medium-term expenditure framework.

According to Gordhan, departments that indicate they can affect savings will have their financial allocations accordingly adjusted downwards.

Friday last week was the deadline for departments to submit their estimated expenditure for the medium-term expenditure framework. This will be discussed by National Treasury's budget analysts and departmental officials mid-August.

Special attention will be given to departmental roles and objectives, as well as to whether these relate to service delivery.

Departments will also have to indicate whether they have trimmed operating costs, advertising spend, motor-vehicle rental, travelling allowances, consultant fees and entertainment expenditure.

Departmental programmes that have failed to meet their stated objectives in the past will in future have to be identified. Such programmes will need to be either modified or put on a back burner to affect savings.

Departmental savings have already reached R19bn since the beginning of the year, when Treasury issued instructions for expenditure to be cut back.

- Sake24