Budget shortfalls must not negatively impact service delivery: Cabinet

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Cabinet says measures to address budget shortfalls resulting from government’s current fiscal constraints must not impact negatively on service delivery. This was announced at a media briefing in Pretoria by Minister in the Presidency Khumbudzo Ntshavheni following yesterday’s cabinet meeting.

Her statement comes a few weeks before Minister of Finance Enoch Godongwane tables his Medium-term budget policy statement and after a letter from Treasury was penned earlier this month to national and provincial departments outlining cost-cutting measures to close government’s fiscal gap.

Ntshavheni says as part of the in-year performance review of progress in implementation priorities agreed to with Ministers, the President and Deputy President will meet with individual Ministers to ensure that fiscal management does not derail agreed upon priorities.

“The Minister of Finance during the tabling of the medium-term policy statement will then announce the full measures that will be taken and we are also confident that the President will also talk to the nation because we do not want to create the impression that there is a crisis and South Africa is going to collapse. South Africa is not going to collapse.”

“We have everything on hand and what are the initiatives to resolve let’s wait for the guidelines as the Minister of Finance issues them so that we can then talk to them. We are also going to encourage the Treasury to not just issue the guidelines but to also explain to the media about the guidelines.”

SA economy under pressure: