Pravin's plan for a leaner, meaner government

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Will the minister clamp down on five-star hotels and luxury BMWs?

PRETORIA - A theme to emerge from Pravin Gordhan's short period as finance minister is a dislike for low priority or non-essential spending. He has already warned government employees against non-essential spending such as self congratulatory advertising.

In this year's Mini-Budget Statement, Treasury says it has identified total net government savings of R14.5bn at national level and R12.6bn at provincial level over three years. It has earmarked this money for higher priority spending.

"To date, substantial savings have been identified in administration and non-essential items, such as catering, communication, consultants, inventory, stationery and printing, travel and subsistence, accommodation and entertainment," notes the Mini Budget Statement. "Some savings have also been identified by cutting expenditure from low-priority programmes. In addition, the general level of expenditure on administration programmes across national departments, which has increased by an annual average of 11.7% over the past five years, has been reduced."

Furthermore, the Treasury reports that a ministerial task team on cost-cutting is reviewing a range of programmes, agencies and public entities as part of government's comprehensive expenditure review. The plan is to ensure that real cost-cutting measures are adopted throughout national, provincial and local government.

The Mini-Budget Statement contained no specific reference to recent controversial examples of spending at ministerial level, including luxury cars and five-star hotels.

Write to Julius Cobbett: julius@moneyweb.co.za