Budget 2020: Plans to shrink public service wage bill, says Mboweni

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Budget 2020: Plans to shrink public service wage bill, says Mboweni
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Finance Minister Tito Mboweni said that the government aims to save R37.8 billion in the next financial year. BudgetSpeech2020

JOHANNESBURG - "Public servants do crucial work for our country, often in trying conditions," Finance Minister Tito Mboweni told Parliament during his national budget speech on Wednesday.

Mboweni said the governing party is a firm believer in the critical role of the state in development. "Working with the public sector unions, we have over the past 15 years sought to improve the lot of public servants, and we have committed significant resources for compensating them every year even as we have tried to increase their numbers in recognition of their demanding workloads. Between 2006/07 and 2011/12, we were able to add about 190 000 employees. However, at the same time, government wages also increased significantly.

Mboweni said that the country cannot continue like this, with classroom sizes growing, hospitals getting fuller and communities are becoming increasingly unsafe. "Once we get wage growth, corruption and wasteful expenditure under control, we will focus our attention on hiring in important areas- such as education, police, and health care. We can hire strategically, and better match skills with opportunities.

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