DAVID MAYNIER: Cost review is urgent
The resignation of Michael Sachs from treasury underlines what seemed apparent for weeks: the budgeting process is in chaos
Finance minister Malusi Gigaba’s maiden medium-term budget policy statement allowed for a full-scale budget blowout because he would not, apparently, sugar-coat the state of the economy. (As he put it later, he wouldn’t "do a Comical Ali and tell people everything was fine".) But the shock resignation of veteran budget office tsar Michael Sachs suggests the "decision not to take any decisions" has more to do with a chaotic budget process, which has now been centralised under President Jacob Zuma, than anything else. We now have: * A "presidential fiscal committee" making decisions about the budget rather than Gigaba’s committee on the budget; * A "mandate paper" setting out budget priorities in terms of a new prioritisation framework compiled by the department of planning, monitoring & evaluation, rather than national treasury; and * Rogue elements, such as Morris Masutha, who are peddling a R40bn budget-busting higher education plan, with Zuma’s support. This shows that treasury is...
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