Question NW1150 to the Minister of Finance
19 May 2016 - NW1150
Maynier, Mr D to ask the Minister of Finance
(a) What are the full relevant details of the Expenditure Reductions for the 2016 Medium-Term Expenditure Framework, as highlighted in Table 3.3 on page 31 of the 2016 Budget Review, in terms of the source of the specified reductions in the (i) 2017-18 and (ii) 2018-19 financial years in each (aa) national department, (bb) province and (cc) municipality and (b) what percentage do the specified amounts represent in each case in respect of the (i) reductions at each level, (ii) total reduction and (iii) total reduction in each specified financial year?
Reply:
The reductions of R10 billion in 2017/18 and R15 billion in 2018/19 were effected on compensation budgets at the national and provincial levels of government. These were allocated based on the proportion of non-occupational specific dispensation (OSD) positions in a department. This ensures that the impact on service delivery is minimised, as the bulk of the reductions will apply to managerial and administrative staff. Of these amounts, national departments carried 53 per cent of the cuts and provincial governments carried 47 per cent, based on the proportions on non-OSD staff at both levels. Provincial reductions were effected through the provincial equitable share (PES).
Table 1: Summary of expenditure cuts at the national level
Table 2: Summary of expenditure cuts at the provincial level
