Treasury has provided a range of cost-cutting proposals for government, which has been criticised by the PSA.

Treasury ahead of the MTBPS on Wednesday, 26 October 2022. Picture: GCIS.

JOHANNESBURG - The Public Service Commission (PSC) has warned National Treasury against implementing a blanket approach as it tries to bring down government’s runaway spending.

It’s understood treasury has touted a number of cost-cutting measures ahead of the Mid-term Budget Policy Statement on 1 November 2023.

The country’s weakening fiscal position has prompted urgent calls for cost-cutting measures by government.

Last month, National Treasury issued a letter to national and provincial departments detailing the fiscal challenges faced by government in the current financial year.

In the letter, National Treasury says the country’s budget shortfall is a result of a drop in tax revenue and tighter borrowing conditions.

The ballooning public service wage bill also remains a major concern.

In response, National Treasury’s cost-cutting proposals include a moratorium on new appointments in the public sector, as well as freezing new infrastructure projects.

The PSC's Anele Gxoyiya says National Treasury must perform a fine balancing act.

"What National Treasury is trying to do is to get government departments to cut on frills but not to hinder service delivery and government’s responsibility is not about maximising profits. So, it can’t be about saving at all costs.”

Treasury says the executive and schedule 2 public entities – which include some state-owned companies – are exempt from the proposals to limit spending.