Treasury urged to reconsider proposals to slash govt budget

Treasury urged to reconsider proposals to slash govt budget

The Free-Market Foundation has urged National Treasury to consider its proposals to slash the government budget. 

Finance Minister Enoch Godongwana

The call comes amid reports that Treasury will propose a freeze on new public service jobs and procurement contracts for all infrastructure projects to check government spending.

Finance Minister Enoch Godongwana is expected to table the Medium Budget Policy Statement in November.

The FMF's Head of Policy Martin van Staden believes the current 30-member Cabinet should be whittled down to 10.

"The Free-Market Foundation is heartened that National Treasury is realising the importance of fiscal responsibility to the sustainability of our country. 

"We urge government to follow with action by cutting the size of Cabinet and shelving proposals like the National Health Insurance and Basic Income Grant, as this will go a long way in reducing government spending and by avoiding excessive expenditure in the future."

Trade union federations, COSATU and SAFTU have already voiced their opposition to any plans to reduce spending.

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