Government will over the next three years attempt to reduce the public sector wage bill by R160 billion, Finance Minister Tito Mboweni said on Wednesday.<\/p>\n
The intervention comes as the state attempts to reduce high spending on salaries in the sector.<\/p>\n
\u201cPublic servants do crucial work for our country, often in trying conditions. The governing party is a firm believer in the critical role of the state in development. For this reason, we need qualified, motivated and effective staff,\u201d said the Minister.<\/p>\n
Working with the public sector unions, government has over 15 years sought to improve the lot of public servants.<\/p>\n
\u201cWe have committed significant resources for compensating them every year even as we have tried to increase their numbers in recognition of their demanding workloads,\u201d he said.<\/p>\n
Between 2006\/07 and 2011\/12, the state added about 190 000 employees. However, wages also increased significantly.<\/p>\n
\u201cTo balance the books, we slowed hiring, and since 2011\/12, the number of government employees has declined,\u201d he said. \u201cWe cannot go on like this. Classroom sizes are growing, hospitals are getting fuller and our communities are becoming increasingly unsafe.\u201d<\/p>\n
He said once wage growth, corruption and wasteful expenditure was under control, government would focus its attention on hiring in important areas such as education, police, and health care.<\/p>\n
\u201cWe can hire strategically and better match skills with opportunities,\u201d he said.<\/p>\n
Government has tabled an agenda item on the management of the public service wage bill at the Public Service Coordinating Bargaining Council.<\/p>\n
\u201cThe focus is to discuss containment of costs in the final phase of implementation of the current wage agreement,\u201d said the Minister.<\/p>\n
Mboweni said government anticipates to save R37.8 billion in the next financial year.<\/p>\n
Delivering the 2020 Budget speech on Wednesday, the Minister revealed that government\u2019s total consolidated spending is expected to grow at an average annual rate of 5.1%, from R1.95 trillion in 2020\/21 to R2.14 trillion in 2022\/23.<\/p>\n
\u201cThis is mainly due to mounting debt-service costs,\u201d he said. \u201cNon-interest spending declines on average over the MTEF in real terms.\u201d<\/p>\n
Mboweni said: \u201cAs a major step towards fiscal sustainability, today we announce a net downward adjustment to main budget non-interest expenditure of R156.1 billion over the next three years relative to the 2019 Budget projections.\u201d<\/p>\n