KZN in the eye of a fiscal storm with R5.3 billion wage cut
22 November 2020
A National Treasury briefing around the Division of Revenue Second Amendment Bill, has revealed that KwaZulu-Natal (KZN) is in the eye of a fiscal storm, with the biggest blow set to hit the province being a R5.3 billion cut in the provincial compensation budget, translating into a 6.5% reduction on the current wage bill.
The briefing, which took place on Friday last week, also showed that the wage cut is not the end of the woes facing our ANC-led province, with the cuts set to continue into the MTEF over the next three financial years. In layman’s language this relates to no salary increases over the next four years while KZN will have to cut even more posts to meet these budgets.
The DA welcomes this cut. For some time now we have bemoaned the bloated bureaucracy within our province – one which has certainly not morphed into a capable and ethical state with Covid-19 Personal Protective Equipment being just one example of this.
The chickens have come home to roost for the ANC. For too long the ANC have used state employment for patronage and poor cadre deployment. In short, they have created their very own monster.