Cape town: National Treasury's Targeted and Responsible Savings (TARS) programme has identified some R12 billion in wasteful and ineffective programs within government. This announcement was made by Finance Minister Enoch Godongwana during the 2026 Budget Speech in Parliament.
According to South African Government News Agency, Finance Minister Godongwana highlighted the government's commitment to finding savings from unproductive expenditure, closing financial leakages, and eliminating inefficiencies. He emphasized that spending priorities would not require tax increases, as promised in the previous year's budget. The R12 billion in identified savings is expected to be realized over the medium term.
The TARS initiative is designed to be an ongoing part of the budget process, aiming to eliminate inefficiencies and underperforming programs. The Finance Minister stated that every program and allocation must demonstrate value, efficiency, and accountability.
Significant savings have been realized in the Public Transport Network Grant, which will be scaled down by approximately R8.4 billion over the next three years. Although the grant has not significantly improved access to public transport, it will continue to cover indirect costs in cities operating bus services. Additionally, social grants have been earmarked as a potential area for savings, with enhanced targeting and authentication processes expected to yield R3 billion in savings. The South African Social Security Agency has upgraded its verification processes, identifying and terminating nearly 35,000 incorrect or fraudulent grants.
The judiciary, border management, defense, and Statistics South Africa will receive allocations from the remaining savings. National Treasury's 2026 Budget Review emphasized that TARS is part of efforts to rationalize state operations, improve service delivery effectiveness, eliminate waste, and reduce duplication.
The National Treasury also announced a plan to entrench sound fiscal principles in law, aiming to anchor sustainable public finances. This initiative seeks to maintain fiscal consolidation gains without resorting to spending cuts or tax increases. The plan will require each new government to ensure fiscal sustainability throughout its term and select an appropriate fiscal metric to measure compliance.
The proposal is informed by recent experiences, with the government's debt ratio having more than tripled since 2008/09. Debt-service costs have increased significantly, crowding out other spending. A consultation paper will be published to outline the proposals, with an announcement expected in the Medium-Term Budget Policy Statement later this year.