KZN Treasury rolls out cost-cutting measures to balance budget
KwaZulu-Natal Treasury says it is rolling out
strict cost-cutting measures to help balance the province's books.
This is after the government of provincial unity introduced a resolution to address spending trends and pressures through a Treasury “instruction note”.
Finance MEC Francois Rodgers says it is a necessary move as KZN is facing severe financial challenges.
He says these measures are projected to save the province around R3 billion.
READ: eThekwini mayor vows to act on irregular expenditure impacting projects
Spokesperson Nkosikhona Duma said spending on essential services will not be compromised.
"Spending on subsistence and travel, international travel, vehicle rentals, functions and catering, is expected to be substantially reduced in order to realise the required savings to offset the spending pressures.
"A projected R9 billion budget deficit is expected by the end of this financial year. These spending pressures have also compounded the accumulation of accruals and inability to pay suppliers within the prescribed 30 days," said Duma.
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