South Africa’s ‘DOGE’ cuts R6.7 billion in government spending 

The National Treasury’s efforts to slash wasteful government spending appear to be bearing fruit, with R6.7 billion worth of underperforming programmes set to be closed or scaled down immediately. 

This programme, known as the Targeted and Responsible Savings (TARS) initiative, has identified these savings in just the first four months of its operation. 

It includes a wide variety of actions to ensure the government spends its money more efficiently in the current three-year medium-term expenditure framework. 

“Honourable Members, eliminating waste and inefficiency in government is non-negotiable if we are to maintain public trust that tax money is spent responsible,” Finance Minister Enoch Godongwana told Parliament. 

In his Medium-Term Budget Policy Statement (MTBPS), Godongwana struck an upbeat tone, revealing that the government is on track for a wider primary surplus and for its debt to peak at 77.9% of GDP. 

He also provided an update on the TARS initiative, one of the few new measures introduced by the National Treasury as part of negotiations during the Budget Speech debacle earlier this year. 

Godongwana said this initiative systematically identifies duplication, eliminates waste, and reorganises programmes to deliver value for money. 

“We are implementing medium-term savings of R6.7 billion by closing or scaling down low-priority and underperforming programmes immediately,” he said. 

“More than half of this involved identifying people who are double-dipping and defrauding the social grants system.” 

The initiative has been implemented without fear or favour, with it targeting the public transport network grant, which was once seen as vital for effective transportation in South Africa. 

This grant is being scaled down as it has failed to meet its objective, with Godongwana revealing that some cities have failed entirely to get projects off the ground. 

“An integrated public transport system is essential to support working-class communities. We will be reconsidering how to lower the cost of mobility and rework the institutional framework,” Godongwana said. 

The National Treasury’s work under TARS is only beginning, with many programmes still set to face a spending review that may lead to “de-implementation” in the 2026/27 fiscal year. 

Departments subject to spending reviews will have to identify potential efficiency gains and savings, or demonstrate that the projects in question are delivering value for money, to escape the axe.

A programme assessment matrix has been introduced to enable the systematic review of programmes so that departments can identify low-priority or underperforming programmes to be considered by Cabinet for review and rationalisation.

The matrix uses standardised metrics to measure the degree to which programmes:

• Are aligned with legislation and policy, and do not duplicate effort.
• Perform effectively, delivering the desired outputs and outcomes.
• Use resources efficiently, with staffing, administrative overheads, institutional capacity and delivery models that deliver value for money.
• Are financially sustainable, exhibit sound budget discipline and have potential for external funding.
• Changes are being implemented in phases in the 2026 Medium-Term Expenditure Framework (MTEF).

The TARS programme is coupled with the National Treasury’s efforts to audit South Africa’s public service to identify ‘ghost workers’, who are getting paid salaries despite not working for the government. 

It is also currently implementing an early retirement programme.