President Cyril Ramaphosa has called an urgent meeting with organised labour to discuss the Treasury's proposals for harsh cuts to government budgets, which some fear will further damage the ailing economy.
His plan includes freezing all public service posts and infrastructure budgets, News 24 reports.
The Treasury has also proposed scrapping specific government programmes and entire government departments to reduce costs.
Furthermore, it has mooted reducing the headcount in the public service by offering more attractive voluntary severance packages with a target of cutting 200 000 jobs.
The Congress of South African Trade Unions (Cosatu) has expressed dismay at the Treasury's proposals, saying they will only serve to choke the economy and further weaken the government.
It suggested that the government address the main causes of the economic malaise by fixing the energy and logistics constraints crippling the economy.
