Public Sector Wage Bill

Pressure can be relieved in a number of ways such as cutting consultants and reducing staffing in non-core areas such as state-owned entities, as well as ministerial office staff

Additional funds have been allocated to pay teachers, doctors, nurses and police officers but productivity is not always commensurate with salaries

The minister underlined that in the wake of efforts to grow the economy, the government must respect budget constraint

To rein in spending, the government will have to restrict recruitments and delay certain projects

The government is walking a tightrope as civil servants embark on industrial action over pay

However, the treasury still expects the country to achieve a main budget surplus from this year onwards

Labour has been on the receiving end of a failing economy’s onslaught, giving a business-friendly government the upper hand

Fiscal consolidation is drawing to a close as the public purse was boosted by commodities, but the treasury will probably continue exercising restraint

This is as a strike looms in the public sector after some unions have rejected the government’s offer of a 3% wage hike

Cosatu unions have declared a dispute and have accused the government of undermining collective bargaining

Eskom, Transnet and the public sector wage bill will feature large in next week’s medium-term budget policy statement

Commentators have weighed in on the Transnet strike’s economic hit, but strike season isn’t over yet

Workers are in the throes of a cost of living crisis, which could force the government to fold on its hard line against more spending

Enoch Godongwana is currently seized with preparations for the medium-term budget, which will give details on whether fiscal stability is still possible

The treasury is meeting rating agencies that identified the public service compensation as a threat to South Africa’s credit outlook