Govt services continue to be funded under PFMA ahead of Budget pass

National Treasury says until the passing of the new Budget, government services will continue to be funded under Section 29 of the Public Finance Management Act (PFMA).

This allows spending of up to 45% of last year’s Budget during the first four months, and up to 10% for each month after that.

National Treasury Director-General Duncan Pieterse says the tabling of multiple budgets will not constitute fruitless and wasteful expenditure as costs have been kept to a minimum.

“The costs that are incurred in terms of the Budget process are mainly related to things like travel, accommodation, printing, advertising and so on. So, the cost associated with the past two budgets does not constitute fruitless and wasteful expenditure,” adds Pieterse.

“However, what we have done and will continue to do for the next Budget is to see how we can further limit those costs. Because we are mindful that these cost as they are incurred can be viewed in a negative light,” explains Pieterse.