Gordhan to stop state officials from ‘living large’

2011-10-25 12:39

Finance Minister Pravin Gordhan said government will trim its spending by R900 million in the 2011/12 expenditure in its drive to promote effective financial management of the economy and public sector.

“Perceptions that government and its official are living large undermine public trust. Wasteful public expenditure must be eliminated,” said Gordhan during his Medium Term Budget Policy Speech today in Parliament.

His comments come after President Jacob Zuma yesterday axed Cooperative Governance and Traditional Affairs Minister Sicelo Shiceka for financial mismanagement that had resulted in him using public funds to go overseas to visit his jailed girlfriend.

“As public servants we need to look at inefficiencies and extravagance more carefully, and exercise our moral judgements and spend more prudently,” he said.

He added: “In preparing the 2012 Medium Term Economic Framework (MTEF), spending baselines have undergone rigorous review to identify areas of inefficient and non-priority expenditure.

“More effective use of resources has been sought across national, provincial and local government departments and public entities.

“Revised baseline allocations are being prepared taking into account the carry-through costs of the 2011 salary agreement, identified savings and reprioritisation proposals.

“The overall impact of these adjustments is a decrease of R900 million in the 2011/12 expenditure estimate,” he said.

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