Serrari Group

In response to a significant revenue shortfall, South Africa’s National Treasury has unveiled a series of cost-cutting measures aimed at optimizing government expenditure. According to Reuters, these measures, articulated in a letter directed to national departments, provinces, and public entities, signify a proactive approach to addressing the country’s economic challenges.

Among the key initiatives is the implementation of a hiring freeze, a decisive step to curtail government spending. Additionally, the treasury has decided to suspend the advertising of new procurement contracts for all infrastructure projects, aligning with a commitment to prudent financial management.

The treasury underscored that these measures are a direct response to the economic underperformance and resultant revenue shortfalls. Collaborative efforts with government entities will be paramount in identifying further strategies to consolidate budgets, recognizing that the measures outlined in the letter may not comprehensively restore fiscal stability.

Effective from September 15, 2023, these measures aim to counteract an anticipated budget deficit resulting from a dip in tax receipts due to lackluster economic growth.

Persistent power cuts, which have stifled economic growth and adversely affected businesses over the past decade, remain a substantial challenge. State power utility Eskom has grappled with unprecedented power outages this year due to breakdowns in coal-fired plants.

Although the economy managed to achieve a modest 0.2% growth in the first quarter of 2023, experts contend that without power interruptions, growth could have approached a healthier 2%. The central bank shares this sentiment, emphasizing the debilitating impact of power outages on economic recovery.

In October, the government is expected to unveil additional measures to address the revenue gap in its medium-term budget policy statement. These forthcoming steps will be closely monitored as South Africa navigates its economic challenges and endeavors to establish financial stability in a dynamic global landscape.

Photo Source: Google

By: Montel Kamau

Serrari Financial Analyst

3rd September, 2023

Share this article:
Article and News Disclaimer

The information provided on is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk. is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information on the website is provided on an "as-is" basis, with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

In no event will be liable to you or anyone else for any decision made or action taken in reliance on the information provided on the website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.

The articles, news, and information presented on reflect the opinions of the respective authors and contributors and do not necessarily represent the views of the website or its management. Any views or opinions expressed are solely those of the individual authors and do not represent the website's views or opinions as a whole.

The content on may include links to external websites, which are provided for convenience and informational purposes only. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them.

Every effort is made to keep the website up and running smoothly. However, takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.

Please note that laws, regulations, and information can change rapidly, and we advise you to conduct further research and seek professional advice when necessary.

By using, you agree to this disclaimer and its terms. If you do not agree with this disclaimer, please do not use the website., reserves the right to update, modify, or remove any part of this disclaimer without prior notice. It is your responsibility to review this disclaimer periodically for changes.

Serrari Group 2023