Godongwana says new metro reform programme aims to cut waste

Minister of Finance Enoch Godongwana said a new reform mechanism that incentivises metro municipalities to get more money from the National Treasury if they meet set performance targets is part of greater state-wide budget reform aimed at cutting waste.

Godongwana said that without the ability to opt for the unpopular choice of raising taxes, the Treasury’s alternative is to cut expenditure, starting with waste.

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Addressing metro mayors during a municipal reform workshop on Monday, Godongwana said Treasury' spending reviews are being met with resistance, but unpopular choices will have to be made.

“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.”

Godongwana has also questioned the necessity of the National Student Finance Aid Scheme (NSFAS), which administers state-sponsored tuition, especially since the institution itself employs service providers to do the job for them.

“The Department of Higher Education can easily do that and give the university their money. Why do we need a third party?”