The refusal by Finance Minister Tito Mboweni to award 1.2 million public servants inflation-busting salary increases over the next three years has paid off – at least in alleviating the pressure on South Africa’s deteriorating public finances.
Mboweni set the cat among the pigeons in 2020 when he proposed a three-year wage freeze for public servants in an attempt to cut government expenditure by R300-billion and rein in ballooning government debt of R5.23-trillion.
For many years the spend on wages for public servants has been the single-largest component of the government’s consolidated expenditure. In 2019/20 alone, the government shelled out R623.8-billion to pay public servants – a line item in the national Budget that accounted for about 34% of government expenditure.
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