Daily News

Salary bill: president urged to act decisively

- BONGANI HANS bongani.hans@inl.co.za

PRESIDENT Cyril Ramaphosa will have to act decisively in dealing with the bloated public service, says economist Bonke Dumisa.

He said Finance Minister Tito Mboweni had no power to use his mid-term budget speech to dictate to the government how it should reduce its staff, or how Ramaphosa should trim his huge cabinet.

Delivering his maiden Medium-Term Budget speech, Mboweni said about 85% of the increase in the wage bill was as a result of higher wages, rather than headcount increases.

He said the National Treasury would not allocate additional money to meet wage agreements, which had “exceeded budgeted baselines by about R30.2 billion”. He said that the salary bill was unsustaina­ble.

“At least he has put it in the public domain that we have an unsustaina­ble wage bill,” said Dumisa.

Mboweni had said department­s would have to deal with salary costs “within their own baseline”.

However, Sadtu, Cosatu and the South African Federation of Trade Unions (Saftu) interprete­d Mboweni’s statement as an attack on government workers.

Saftu spokespers­on Patric Craven said Mboweni’s statement meant that the salary budget allocated in February would “remain exactly as it was”.

“This can either lead to retrenchme­nts, or cuts in their (department­s’) services, which we will be opposed to.

This can either lead to retrenchme­nts or cuts in their services, all of which we will be opposed to

Patrick Craven

 ??  ?? PROF BONKE DUMISA
PROF BONKE DUMISA

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