Government is developing a capital budget framework with the aim of improving its project management skills, planning and capacity shortfalls within the public sector, the National Treasury said on Wednesday.
This comes after concerns that the roll-out of capital projects was often delayed or that government departments found themselves spending more than what was initially budgeted for. “A capital budgeting framework that addresses the planning, skills and capacity shortfalls across the public sector is being developed. “Over the medium term, the emphasis will be on improving spending efficiency within existing budgets, with a greater share of funds directed to improving asset management and maintenance. “The development of a strong capital project planning and appraisal system will also enable government to adjust expenditure plans where financially viable projects with clear social or economic benefits have been identified,” the National Treasury said. The National Treasury said the framework, in the main, was to improve government’s project management spending with an aim of curbing wastage and to ensure that projects are completed with the amount it was initially budgeted for. The National Treasury said in principle, borrowing to fund investments that generate high returns for national development should not be unduly constrained by the fiscal framework. This would include borrowing to fund the rehabilitation and the construction of roads, rail networks, schools and hospitals.
