Finance Minister Enoch Godongwana has announced a new reform programme designed to encourage metro municipalities to perform better in exchange for increased funding from the National Treasury.
Speaking at a municipal reform workshop on Monday, he explained that the initiative forms part of broader government budget reforms aimed at tackling wasteful expenditure.
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Godongwana stressed that raising taxes was not a viable option, leaving the Treasury with no choice but to curb waste and cut back on unnecessary spending.
Spending Reviews Face Resistance
Addressing metro mayors directly, Godongwana admitted that Treasury spending reviews are not popular and have been met with resistance.
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“Without the ability to opt for the unpopular choice of raising taxes, the Treasury’s alternative is to cut expenditure, starting with waste,” he said.
He added that “unpopular choices will have to be made” to bring the country’s finances under control.
Enoch Godongwana Questions NSFAS and Arts Institutions
In his remarks, Godongwana singled out several areas of concern, including the Department of Sport, Arts and Culture’s 27 institutions.
“The Department of Sport, Arts and Culture has got about 27 institutions. What are they doing? All of them funded by the fiscus. We have to close some of them,” he said.
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He also questioned the necessity of the National Student Financial Aid Scheme (NSFAS), which oversees student funding but outsources parts of its work to service providers.
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“The Department of Higher Education can easily do that and give the university their money. Why do we need a third party?” Godongwana asked.
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