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A review of the size and structure of the state is underway to lift the burden that poor performance places on the budget, the treasury said on Wednesday in the medium-term budget policy statement .
“Too many government activities are inefficient, overlapping and non-critical,” it said. “Government considers these inefficiencies to place a further drag on the economy.” But the MTBPS set out four criteria that will be used to determine whether a department should be closed or merged. The remaining two considerations are where there is a duplication between departments, and whether there is lack of clarity about a legislative mandate.
The treasury said recommendations on closures are being drafted by itself, the presidency and the department of public service and administration and the planning, monitoring and evaluation department.In his MTBPS speech to the National Assembly, Godongwana said the review would also seek to create “standards for more sustainable remuneration of executives that serve public entities receiving transfers from the fiscus”.
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