Economist Dawie Roodt said South African public servants are overpaid and don\u2019t deliver the quality services they are supposed to.<\/p>\n\n\n\n
Roodt\u2019s comments come after Public Service and Administration Minister Noxolo Kiviet announced that public servants will receive a 4.7% salary increase.<\/p>\n\n\n\n
The 4.7% salary increase, effective 1 April 2024, was applied across national and provincial departments.<\/p>\n\n\n\n
Kiviet said the wage increase applies to non-senior management service public servants on salary levels between 1 and 12.<\/p>\n\n\n\n
According to Kiviet, the decision on the 2024 wage increase considered several factors, including the current economic climate and the imperative for fiscal restraint.<\/p>\n\n\n\n
The salary increases will make it more difficult for Finance Minister Enoch Godongwana to fulfil his promise to curb \u201crunaway expenditure and debt\u201d.<\/p>\n\n\n\n
The DA\u2019s shadow minister of finance, Dion George, said the ANC government has no plans to address the country\u2019s dismal financial position.<\/p>\n\n\n\n
He said they have no plan to accelerate economic growth, stabilise debt, and reign in runaway expenditure.<\/p>\n\n\n\n
\u201cDespite President Cyril Ramaphosa\u2019s commitment to restructure the size of the state, this is not reflected in the numbers,\u201d George said.<\/p>\n\n\n\n
\u201cThe public sector wage bill continues to balloon unsustainably. An additional R251 billion has been budgeted to cover an increase in the public sector wage bill.\u201d<\/p>\n\n\n\n
Roodt also said the public sector wage bill is too high and that public servants are overpaid.<\/p>\n\n\n\n
Two things happened over the past ten years, which caused problems for the country\u2019s finances \u2013<\/p>\n\n\n\n
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The result was that South Africa\u2019s debt reached record-high levels. \u201cWe cannot afford to spend so much money. We need to cut back on state spending,\u201d Roodt said.<\/p>\n\n\n\n
\u201cThe day is going to come when we get into very deep financial trouble if the state debt keeps on increasing.\u201d<\/p>\n\n\n\n
He added that most of state spending goes to people, and cutbacks are needed to reign in this spending.<\/p>\n\n\n\n
This article was first published by Daily Investor and reproduced with permission. Read the original here<\/strong>.<\/a><\/em><\/p>\n\n\n\n
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