A major constraint on South Africa's economic growth potential in the last decade has been rolling power cuts as utility Eskom struggles with breakdowns at its coal-fired power plants. Underperformance at state-owned logistics company Transnet has also weighed on growth.
The treasury said it remained committed to stabilise public finances. This will be achieved through spending reductions, moderate tax revenue measures and efficiency measures across the government - including the reconfiguration of government that would involve the merging or closure of public entities.
The treasury did not elaborate on the specific measures, but Finance Minister Enoch Godongwana said in his budget speech that "our most effective way of funding government is through an efficient tax administration and by broadening the tax base".