Deputy Speaker, the MF strongly believes that the deficit will have tremendous implications for and a negative impact on service delivery. The austerity measures such as saving schemes and reprioritisation of departmental programmes, non-core versus core functions, as a way and means of instilling financial management and discipline are welcome.
The MF feels that the austerity measures are not adequately addressed in all the areas of government, including the executive, like going on insignificant international trips, etc. However, the MF believes that this is a good initiative, but it should start from the executive level where more funds are spent.
KwaZulu-Natal is heading towards an overdraft of R4 billion as a result of poor financial planning. This has a detrimental impact on the money that is budgeted for service delivery. This means that less money is spent on service delivery and more on the executive, whereas, in actual fact, it is suppose to be the other way around. This will assist government if it is serious about transforming the economy and restructuring the public service and economic recovery. The MF will support the Medium-Term Budget Policy Statement.