Government headcount freeze to remain in place

Finance Minister Pravin Gordhan. File picture: Siyasanga Mbambani, Department of Communications

Finance Minister Pravin Gordhan. File picture: Siyasanga Mbambani, Department of Communications

Published Oct 26, 2016

Share

Parliament - A freeze on new government jobs is set to remain in place as government departments are likely to battle to stay within budget due to fiscal constraints, according to the medium-term budget policy statement (MTBPS).

Finance Minister Pravin Gordhan tabled the MTBPS in Parliament on Wednesday, which showed that growth could slow to as little as 0.5 percent this financial year, increasing moderately to two percent by 2018.

To spur economic growth government would have to increase capital investment and act with more restraint, which would require "greater restraint in compensation spending"

"Medium-term projections show that to stay within budgets over the next three years, all national departments will have to moderate headcounts," Treasury said.

"This will be achieved through attrition, as staff who retire or leave employment will not be replaced.

African News Agency

Related Topics: