Cutting certain departments key in decreasing expenditure: Economist

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Chief Economist at the Efficient Group, Dawie Roodt says government is responsible for slow economic growth. He says the high percentage of grant recipients is proof that the economy is not growing.

Finance Minister Enoch Godongwana is currently delivering the Medium-Term Budget Policy Statement.

Dawie says to cut government expenditure, the Minister should consider cutting off some departments that do not add value to the economy.

“And the good start point is for the Minister of Finance to stand up this afternoon and say ‘Listen, I’m going to cut all this VIP protection for people on black cars and blue lights. That’s just as a sign that I’m really serious about cutting back the state spending.’ And then there are many departments that must simply be closed down. Why do we need the Department of Sport? What do you think is the job of the Deputy Minister of Sport? What does he do? Do we really need a person like that? We need to do those kinds of things. We need to cut back and cancel many of these departments that are clearly just spending money and costing us money that’s certainly not adding any value to the economy.”

The government is extending the COVID-19 Social Relief Distress grant by R34 billion. More funds will be allocated to health, education, and policing services.

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