No extra taxpayer money for civil servants? - Maybe
30 October 2020
One of the more significant signals in the Finance Minister’s mid-term budget statement was not the R10 billion going into the SAA money pit which, despite appearances, is to keep our status as a good credit risk. It was when he said a salary and wage freeze on the civil service should be a consideration.
What the Minister said was:
“Consideration should be given to the proposal for across-the-board compensation pay reductions to management level positions across national, provincial and municipal governments, state-owned entities and other senior public representatives”.
Considering something does not mean it will happen. But it is at least recognition that our army of civil servants spend money that those in the private sector make. Should a wage and salary freeze be imposed on all civil servants it will answer those who correctly point out that they have escaped economic realities. And, since the public servant salary bill absorbs an enormous proportion of tax revenue, it has to shrink, if we are to avoid a debt trap. Not that the trade unions will agree, of course.