BUDGET IN NUTSHELL: Mboweni slashes public-sector wages in bid to appease ratings agencies Budget2020
Finance Minister delivers the 2020 budget in Parliament, Cape Town on February 26 2020. Picture: ESA ALEXANDERA huge cut in the public-sector wage bill, setting the ANC government up for a mighty fight with its union allies, is the standout item in finance minister Tito Mboweni’s budget.In what it described as “a major step towards fiscal sustainability”, the government proposed cutting expenditure over the next three years by R156.1bn compared with its 2019 projections.
A R160bn drop in the remuneration costs for national and provincial administrations and other public bodies will account for the bulk of the anticipated R261bn in savings, equivalent to 1% of GDP for the next three years. This will be somewhat offset by a R111bn increase in allocations for ailing state-owned state enterprises , mostly Eskom and SAA.
While the budget may please investors and analysts, it is likely to be resisted by unions, with the budget review citing the renegotiation of existing deals and a new round of talks among the biggest risks to its whole fiscal framework. Ian Stuart, the acting head of the budget office, acknowledged that the negotiations would be tough and subject to political processes. Mboweni later said he was confident that labour and government would find each other. For markets, the question will be whether Ramaphosa will stand by him in the face of tough negotiations and possibly even strikes.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Finance Minister Tito Mboweni should announce a tax on e-cigarettes in Budget Speech | IOL NewsE-cigarette taxation is necessary because e-cigarette use is harmful to health and increases the strain on the health care system and public purse.
Read more »
Mboweni urged to support exporters, entrepreneurs in budget reviewFinance Minister Tito Mboweni's annual budget review should offer concrete measures to boost exports and support small and medium enterprises.
Read more »
Budget 2020: ‘Tito Mboweni will be walking a tax tightrope’ | Cape ArgusBudget 2020: A tax expert said Finance Minister Tito Mboweni would be walking a tightrope if he wanted to use more tax to raise government revenue.
Read more »
WATCH LIVE | Tito Mboweni delivers much anticipated budget speechBudgetSpeech2020 | As to the bane of the working class, it remains to be seen whether tax will be increased.
Read more »
Budget 2020: Plans to shrink public service wage bill, says Mboweni'There is more than one way in which this goal can be achieved. Organised labour understands where we are,' Finance Minister Tito Mboweni said.
Read more »
Budget 2020: No more bloated salaries at public entities, says MboweniFinance Minister Tito Mboweni told Parliament that government will be putting a stop to excessive salaries at public entities. BudgetSpeech2020
Read more »