State wage bill to be slashed by R160bn over three years
The intervention comes as the state attempts to reduce high spending on salaries in the sector.
GOVERNMENT will over the next three years attempt to reduce the public sector wage bill by R160 billion, Finance Minister Tito Mboweni said on Wednesday.
The intervention comes as the state attempts to reduce high spending on salaries in the sector.
“Public servants do crucial work for our country, often in trying conditions. The governing party is a firm believer in the critical role of the state in development. For this reason, we need qualified, motivated and effective staff,” said the Minister.
Working with the public sector unions, government has over 15 years sought to improve the lot of public servants.
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Between 2006/07 and 2011/12, the state added about 190 000 employees. However, wages also increased significantly.
“To balance the books, we slowed hiring, and since 2011/12, the number of government employees has declined,” he said. “We cannot go on like this. Classroom sizes are growing, hospitals are getting fuller and our communities are becoming increasingly unsafe.”
He said once wage growth, corruption and wasteful expenditure was under control, government would focus its attention on hiring in important areas such as education, police, and health care.
Mboweni said government anticipates to save R37.8 billion in the next financial year.
Delivering the 2020 Budget speech on Wednesday, the Minister revealed that government’s total consolidated spending is expected to grow at an average annual rate of 5.1%, from R1.95 trillion in 2020/21 to R2.14 trillion in 2022/23.
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