The National Treasury has defended the costs of the last two national budgets amid growing public debate saying the funds were used to support critical areas of the economy and do not qualify as fruitless or wasteful expenditure according to officials the spending was aimed at stabilizing key sectors generating employment and laying foundations for sustainable economic growth
The Treasury highlighted investments in infrastructure energy reform and small business support as central components of the budget strategy arguing that these sectors are vital for boosting GDP improving productivity and attracting private investment while critics have raised concerns about project delays and underspending Treasury maintains that long term economic goals require consistent investment even in the face of short term challenges
Finance experts say that while some inefficiencies in delivery are expected in large scale government programs the intent behind the spending aligns with global best practices for economic recovery following a period of fiscal strain caused by the pandemic and ongoing global market instability
Treasury also pointed to job creation programs social relief grants and public sector wage agreements as part of the economic stabilization effort emphasizing that these measures helped maintain social cohesion and consumer demand both of which are key to economic resilience
Opposition parties and civil society groups argue that greater accountability is needed to ensure that spending translates into tangible economic impact but Treasury insists that internal controls and audit systems are in place to track outcomes and adjust programs as needed
Analysts note that public spending continues to play a crucial role in driving economic momentum in South Africa where private sector investment remains constrained by power shortages policy uncertainty and global economic headwinds
The upcoming budget will likely face greater scrutiny as pressure mounts on government to stimulate growth reduce debt and improve service delivery all while keeping spending efficient and aligned with economic performance targets
Treasury has reaffirmed its commitment to fiscal responsibility and said it will continue to ensure that every rand spent contributes to inclusive growth and long term economic development
