{"id":279507,"date":"2018-10-24T10:22:30","date_gmt":"2018-10-24T08:22:30","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=279507"},"modified":"2018-10-24T10:22:30","modified_gmt":"2018-10-24T08:22:30","slug":"r3-52-of-every-r10-spent-by-government-goes-to-public-sector-salaries","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/government\/279507\/r3-52-of-every-r10-spent-by-government-goes-to-public-sector-salaries\/","title":{"rendered":"R3.52 of every R10 spent by government goes to public sector salaries"},"content":{"rendered":"<p>With finance minister Tito Mboweni set to deliver his maiden budget speech, all eyes have once again turned to South Africa&#8217;s finances.<\/p>\n<p>One of the biggest points of contention\u00a0will likely be government&#8217;s growing wage bill, and how much government spends on public sector wages.<\/p>\n<p>Mboweni was recently quoted saying that as much as\u00a0R8 out of every R10 spent by government going to salaries of civil servants<\/p>\n<p>However, this figure was dismissed by South African Federation of Trade Unions general secretary, Zwelinzima Vavi, who described the share as \u201cabsolute nonsense\u201d.<\/p>\n<p><strong>How much does the government spend?<\/strong><\/p>\n<p>Fact-checking website,\u00a0<strong><a href=\"https:\/\/africacheck.org\/reports\/do-south-africas-civil-servants-get-r8-out-of-every-r10-the-government-spends\/\" target=\"_blank\" rel=\"noopener\">Africa Check,\u00a0<\/a><\/strong>has analysed the budget data to see how much money government actually spends on public sector wages.<\/p>\n<p>It notes that South Africa\u2019s 2018 budget shows that money paid to employees made up 35.2% of the government\u2019s consolidated spending in 2017\/18. This is <strong>R3.52 per R10.<\/strong><\/p>\n<p>Jabulani Sikhakhane, spokesperson for South Africa\u2019s national treasury, further clarified to Africa Check that Mboweni was describing a situation he wanted to avoid.<\/p>\n<p>&#8220;Minister Mboweni was not stating as a fact that government spends R8 out of every R10 on salaries,&#8221; Sikhakhane said.<\/p>\n<p>&#8220;His was an illustrative point, that if government spent R8 out of every R10 on employee remuneration, it would be left with R2 for all other services.&#8221;<\/p>\n<p>He added that salaries as a share of spending would vary by government department.<\/p>\n<p>&#8220;In provincial education and health departments, for example, compensation of employees will absorb a significant proportion of the budget.&#8221;<\/p>\n<p><strong>Salaries based on revenue<\/strong><\/p>\n<p>While government&#8217;s wage bill is already high <strong><a href=\"https:\/\/businesstech.co.za\/news\/business\/192100\/sa-governments-r137-billion-wage-bill-vs-emerging-economies\/\" target=\"_blank\" rel=\"noopener\">compared<\/a> <\/strong>to other emerging countries,\u00a0Africa Check noted that the figure increases further when looking at employee compensation as a share of government revenue.<\/p>\n<p>The South African government spends more than it collects, so it has to borrow money to make up the shortfall, explains Professor Jannie Rossouw.<\/p>\n<p>Rossouw is head of economics and business sciences at the University of the Witwatersrand and part of the Fiscal Cliff Study Group.<\/p>\n<p>In a 2018 journal article, the group said it was concerned that South Africa was \u201cheaded for a fiscal cliff due to declining revenue and rising expenditure\u201d.<\/p>\n<p>The group calculated that compensation of employees accounted for 46% of government revenue in 2018, or <strong>R4.60 per R10<\/strong>.<\/p>\n<hr \/>\n<p><strong> Read:\u00a0<a href=\"https:\/\/businesstech.co.za\/news\/government\/277245\/government-knew-about-the-vbs-looting-and-did-nothing-report\/\" target=\"_blank\" rel=\"noopener\">Government knew about the VBS looting \u2013 and did nothing<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Finance minister Tito Mboweni was recently quoted saying that as much as\u00a0R8 out of every R10 spent by government going to salaries of civil servants.<\/p>\n","protected":false},"author":10,"featured_media":271497,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[26],"class_list":["post-279507","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-government","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/279507","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=279507"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/279507\/revisions"}],"predecessor-version":[{"id":279529,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/279507\/revisions\/279529"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/271497"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=279507"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=279507"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=279507"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}