41.9% of total government expenses<\/strong> in 2018\/19. This was followed by purchases of goods and services (21.3%) and social benefits (13.6%). Other items accounted for the remaining 23.2%.<\/p>\nThe financial statistics of consolidated general government statistical release debuted in 2006 with data for 2004\/05. That financial year, compensation of employees accounted for 39.2% of total expenses, rising to a peak of 42.4% in 2010\/11 and moderating slightly to the 41.9% recorded in 2018\/19.<\/p>\n
“The rise in compensation of employees over this period has outstripped inflation,” StatsSA said.<\/p>\n
“General government spent R170 billion on salaries and wages in 2004\/05. This increased to R694 billion in 2018\/19, representing an average annual growth rate of 10.5% per year. The consumer price index, in contrast, increased by an average of 5.8% per year over this period.”<\/p>\n
National Treasury has identified two drivers behind the rise in compensation spending: an increase in the number of personnel numbers and a rise in remuneration.<\/p>\n
The rise in remuneration, which has had the most impact, was driven by three main factors: the introduction of occupation-specific dispensations, such as once-off salary increases for skilled staff, near the end of the 2000s, the addition of annual cost-of-living adjustments to basic pay, and wage progression within ranks.<\/p>\n
The introduction of occupation-specific dispensations in particular seems to show up in the data, StatsSA said.<\/p>\n
“A time series from the Financial statistics of consolidated general government statistical release shows notable annual increases in compensation of employees from 2007\/08 to 2011\/12, increasing on average by 14.5% per year over this period. The average annual increase for the next five years (2012\/13 to 2016\/17) was lower at 8.8%.”<\/p>\n
“Health and education accounted for over half of the compensation budget in 2018\/19. This was mostly to finance the vital roles that doctors, nurses and teachers perform for a growing population.<\/p>\n
“Public order and safety \u2013 which includes personnel working in the police, correctional services and the courts \u2013 accounted for almost 20% of total compensation of employees.”<\/p>\n
\nRead: Why South Africa still needs SAA: Mabuza<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"Statistics South Africa has published new data on government spending, and the key sectors where taxpayer money is used.<\/p>\n","protected":false},"author":10,"featured_media":297240,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[26],"class_list":["post-452588","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\/452588","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=452588"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/452588\/revisions"}],"predecessor-version":[{"id":452652,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/452588\/revisions\/452652"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/297240"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=452588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=452588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=452588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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