Ramaphosa says cost-cutting measures will not affect service delivery

Ramaphosa assures that the proposed cost-cutting measures, to be outlined in the Medium-Term Budget Policy Statement by Finance Minister Enoch Godongwana, will not impact essential public services such as policing, healthcare, education, and social services.

“We remain absolutely committed to stabilizing our levels of debt and adopting a responsible fiscal policy. The Minister of Finance will set out the government’s plans to achieve this trajectory in the Medium-Term Budget Policy Statement on Wednesday,” said President Ramaphosa.

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MANAGING NATIONAL EXPENDITURE

President Ramaphosa emphasized that these key service delivery areas and public employment initiatives will be shielded from the National Treasury’s cost-reduction strategies. 

He reaffirmed the government’s commitment to maintaining fiscal responsibility and managing debt levels. 

Ramaphosa acknowledged the long-standing financial pressures on the public purse and cautioned against unchecked spending.

The President outlined that critical sectors like healthcare, education, law enforcement, and other essential services will be safeguarded, with an emphasis on directing spending towards programs benefiting the underprivileged. He acknowledged the importance of social grants, notably the SRD Grant, and public employment initiatives in supporting vulnerable individuals. The Finance Minister will provide further details regarding these spending priorities while presenting the Medium-Term Budget Policy Statement.

“These programmes have reduced poverty and enabled recipients to search for jobs and engage in other economic activities to support their livelihoods. The minister of finance will provide more details of these and other spending priorities when he presents the Medium-Term Budget Policy Statement on Wednesday,” said Ramaphosa.

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ENERGY CRISIS

Ramaphosa also addressed the ongoing energy crisis, indicating efforts to stabilize the situation, including plans for over 12,000 MW of renewable energy projects and private sector collaboration for grid expansion. Additionally, he highlighted the revitalization of the railway network, with investments to modernize vandalized train corridors and ongoing measures to combat the construction mafia, as reported by Minister Sihle Zikalala.

PUBLIC HOLIDAY

Ramaphosa also declared 15^th December 2023 a public holiday in order to celebrate the Rugby Victory. The holiday will be a celebration of Springbok’s win against New Zealand in the Rugby World Cup Tournament. He said that this celebration will not only be about Springbok, but also about other sportsmen and women in the country.

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