In a move signalling a tightening on government spending, the department of communications & digital technologies has had its spending cut by almost R730m, the 2024 national budget shows.
The Budget Review for 2024 shows that the department, led by minister Mondli Gungubele, has had reductions amounting to R727.9m instituted over the medium term, broken into R415m in 2024/25, R153.7m in 2025/26 and R159.2m for 2026/27. The cuts are mainly on transfers and subsidies, capital assets, and goods and services.
To make this work, the department says it plans to reduce travel and will host more meetings online, conducting more work in-house rather than using consultants, and reducing the number of noncore personnel. Staff will decrease from 357 in 2024/25 to 346 in 2026/27.
Total expenditure is expected to decrease from R3.3bn in 2023/24 to R2.6bn in 2026/27, a 22% reduction.
Over the medium term, the department “will focus on co-ordinating the rollout of broadband internet into underserviced areas through the SA Connect project, and on enabling digital transformation and inclusion through legislative and regulatory interventions”. Gungubele's department has earmarked R2.4bn to continue work for the SA Connect project.
The National Treasury noted that an estimated 53% of department of communications & digital technologies’ budget over the medium term, R4.9bn, is allocated to transfers to entities for their operations and for project-specific funding. Of this, R1.7bn is allocated to the SA Post Office for its universal service obligations to provide postal services in underserviced areas.
Another R1.5bn has been allocated to telecom and broadcast regulator, Independent Communications Authority of SA (Icasa) for regulating the ICT and postal sectors. Icasa is expected is hold another spectrum auction during the year after successfully raising R14bn for state coffers in 2022 when it conducted the first auction since 2004/2005.
National broadcaster the SABC has been allocated R672.4m for its “various activities”. Rival MultiChoice funds its operations mainly through subscriptions and eMedia mostly through advertising.
In addition to allocations from the government, the SABC takes in money from TV licences. All these entities — including Talk Radio 702 owner Primedia and African Media Entertainment — compete for advertising revenue.
In the policy space, the department “will continue to provide a supporting and enabling legislative environment through the development of relevant policies, strategies and legislation.”
Over the medium term, this will include submitting the Audio and Audiovisual Content Services and Online Safety Bill to the minister for approval, and monitoring implementation of the national data and cloud policy.
Expenditure in the ICT policy development and research programme, meant to develop strategies that increase the adoption and use of ICT in SA, is set to amount to R134m over the medium term, the Treasury said.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.