Godongwana says govt will undertake a bold spending review

JOHANNESBURG - Minister of Finance Enoch Godongwana said the government will undertake a bold spending review as political pressure mounts for the executive to account for expensive habits.

State spending is again under the microscope after the National Treasury proposed to hike the standard value-added tax (VAT) rate to narrow the fiscal deficit.

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Godongwana announced a spending review earlier in 2025, but after two failed budgets where VAT increases were rejected, political parties have also made it clear that Treasury wouldn’t be let off the hook easily this time around.

Speaking at the launch of phase 2 of Operation Vulindlela on Wednesday, Godongwana recommitted to improving the effectiveness and efficiency of government spending.

This includes tough policy choices.

“With over 240 spending reviews undertaken by National Treasury and Provincial treasuries since 2013, government has a solid foundation with which to not only introduce cost-cutting measures, but to systematically assess whether public expenditure is effectively aligned with the priorities of this government and delivers the best possible value for money.”