The South African government has announced a plan to save R6.7 billion by shutting down or scaling back underperforming and low-priority programmes as part of a broader push for fiscal discipline and accountability.
The initiative, known as the Targeted and Responsible Savings (TARS) programme is designed to Find overlaps, cut waste, and restructure programmes to make every rand count.
Presenting the Medium-Term Budget Policy Statement (MTBPS) in Parliament, Finance Minister Enoch Godongwana told Members of the National Assembly that cutting wasteful expenditure was essential for restoring public confidence.
‘Honourable Members, eliminating waste and inefficiency in government is non-negotiable if we are to maintain public trust that tax money is spent responsibly,’ Godongwana said.
He explained that over the medium term, the government will achieve R6.7 billion in savings ‘by closing or scaling down low priority and underperforming programmes immediately.’
As reported by BusinessTech, more than half of the identified savings will come from tackling fraud and duplication in the social grants system.
This includes finding individuals ‘who are double-dipping and defrauding the system’, Godongwana pointed out.
The Treasury also plans to reduce the public transport grant, arguing that it has been ineffective and that some cities never even got their projects started.
To improve long-term efficiency, the government has introduced a programme assessment matrix, which will be used to systematically review all public programmes.
This matrix measures how well each programme aligns with legislation and policy, avoids duplication, delivers measurable results and outcomes, uses resources efficiently, ensures value for money, and maintains financial sustainability and good budget discipline.
Godongwana said these changes will be rolled out in phases under the 2026 Medium-Term Expenditure Framework (MTEF).
Compiled by Lulama Klassen
First published on Cape {town} etc
Also see: World Bank approves R15.9 billion loan to revive SA cities
