JOHANNESBURG – The National Treasury on Wednesday took aim at the runaway public sector wage bill, announcing an array of measures to contain it that included the slashing of R27 billion in the medium term.
Finance Minister Tito Mboweni told Parliament in his Budget speech that the bill, which took more than 35 percent of consolidated public spending, was not sustainable.
Mboweni said public servants payments were a major driver of the fiscal deficit.
“The first step is to allow older public servants who want to do so, to retire early and gracefully. This will save an estimated R4.8bn in 2019/20, R7.5bn in 2020/21 and R8bn in 2021/22,” he said.
“In time this will be complemented by limits on overtime and bonus payments as well as pay progression. The system of staffing our diplomatic missions is unjustified and should be reviewed urgently.”