Municipalities across the country will no longer be allowed to spend ratepayers' money on alcohol, catering, credit cards and travel for officials.

This is some of a raft of new measures meant to contain costs at local government as part of finance minister Tito Mboweni's new regulations on cutting down wasteful expenditure.

Mboweni, in consultation with cooperative governance and traditional affairs minister Nkosazana Dlamini-Zuma, published the new stringent measures which are set to take effect from July 1.

The Municipal Cost Containment Regulations also prohibit the hiring of expensive luxury cars by mayors in favour of public transport.

According to the new regulations, the use of consultants by municipalities will also be limited to cases where an assessment of the needs and requirements confirms there are no requisite skills or resources to perform the function.

The rules of contracting consultants will also be tightened to cap costs.

Before appointing a consultant, municipalities must negotiate payments, have a cost ceiling and also agree that the consultant will help equip an in-house staff with some of their skills.

"When consultants are appointed, an accounting officer must ensure the transfer of skills by consultants to the relevant officials of a municipality or municipal entity."

Mboweni also wants municipalities to desist from using public funds to buy alcohol beverages at their conferences.

Alcohol can only be bought if the "municipality or municipal entity recovers the cost from the sale of such beverages".

Catering expenses at municipal functions will also be closely monitored and credit cards given to mayors and other officials must be returned or de-linked.

"Where officials or political office bearers incur expenditure in relation to official municipal activities, such officials must use their personal credit cards or cash . and request reimbursement."

Business class flights for mayors and municipal officials will also be stopped in July.

The South African Local Government Association (Salga) welcomed the regulations but said they should not stop office bearers from conducting their duties.

"We understand the country is quite constrained financially and economically, therefore it becomes necessary that everyone tightens the belt and ensure that we do more for less," said Salga spokesperson Sivuyile Mbambato.

"But in terms of these measures, we should ensure that we do not impede service delivery and implementation of local government programmes."

Mbambato said Mboweni should not only target municipalities and called for these regulations to be "applied across the board".

The regulations also proposes that mayors consider using public transport if it costs less than hiring a car or using their personal vehicles.

Mbambato said that usage of public transport in areas such as Northern Cape, a "very remote area", as well KwaZulu-Natal where there are political killings, was not "practical".

Tshwane mayor Stevens Mokgalapa also took an issue with this regulation.

"You can't use taxis, I mean how effective are you going to be if you use public transport?

"I mean, you are waiting in a public meeting there and they are saying 'the mayor is still waiting for a bus'," said Mokgalapa.

"Nationally we know that our public transport is not working.

"It's not rocket science or something you can hide."