Economy

SA Treasury flags $17.33 billion in wasteful spending since 2013

Date: May 21, 2025

South Africa’s (SA) National Treasury, alongside provincial counterparts, has identified more than R312 billion ($17.33 billion) in wasteful spending tied to underperforming government programmes over the past decade.

This disclosure comes as national expenditure is projected to climb to R2.6 trillion ($145.34 billion) in the 2025/26 financial year, with social services expected to absorb the lion’s share of the budget.

Deputy Finance Minister David Masondo said that curbing inefficiencies in public spending remains a top priority and could lessen the need for further tax hikes in the years ahead.

“For years now, the National Treasury has conducted spending reviews,  our main concern is how these are acted upon by accounting officers,” Masondo said. “There’s a limit to what Treasury can do from its side. The responsibility ultimately rests with departments to eliminate excess and ensure value for money.”

He noted that President Cyril Ramaphosa, working closely with Treasury, is intensifying efforts to root out inefficiencies and improve accountability in the public sector.

The scale of the identified waste underscores long-standing concerns about fiscal discipline within state departments. Analysts say the move to rein in non-performing programmes could free up resources for critical areas without increasing the tax burden on citizens.

--ChannelAfrica--

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