Finance Minister, Pravin Gordhan, announced in his Medium Term Budget speech on 23 October.
Gordhan said no public funds would be used for to purchase alcohol and the entertainment allowance would be limited to R2000 during government events.
Guidelines would be developed for reducing event costs, including better use of government facilities rather than outside venues for meetings.
Among other limits, Gordhan said no new credit cards would be issued to officials and existing ones would be cancelled.
Ministers awaiting allocation of houses would be accommodated in rented apartments not hotels, less spending on advertising, ministers will be limited to business class on overseas trips and no compensation for use of personal cars.
Gordhan said government expenditure substantially exceeded revenue. “Since 2008, we have issued more than R1 trillion in debt. Our level of savings is too low to finance the investment we need.”
He said fixed investment increased from 15 percent of GDP in 1993 to an average of 20 per cent over the past five years.
A new tax administration has been established in the South African Revenue Service, and an overhaul of the tax structure had allowed tax rates to be lowered while improving revenue performance.
Gordhan said, more than 15 million people were now eligible for social grants.
He added that more than 3 million homes had been built, and there was an increase of households with access to electricity, water and sanitation.
The minister said consumer price inflation was expected to average 5.9 per cent in 2013, and to remain within the 3 to 6 per cent target band next year.
