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The public wages bill returned to the spotlight in Parliament on Friday.
Cosatu President Zingiswa Losi is leading the march to the Treasury in Pretoria for the national strike on October 7, 2020. Image: Abigail Javier / EWN
CAPE TOWN – The Treasury said Friday that public servants are some of the top earners.
Officials said this justified a freeze on increases for the public sector as announced in the Medium Term Budget Policy Statement (MTBPS).
They responded to several public presentations on MTBPS in which the public wage bill returned to the center of attention in Parliament.
The Treasury says trends have risen and changed since public servants received a lesser increase than the country’s economic growth.
Deputy Director General Edgar Sishi told the finance committees of both Houses of Parliament that this has been going on for a long time.
“Public servants have received raises for many years that have exceeded the general growth of the economy; in fact, they have received increases that have exceeded the general increase in prices in the economy. “
He also pointed to the rising cost of servicing the country’s debt.
“South Africa’s debt service costs have had a significant crowding-out effect and continue to do so on major economic investments of government social spending. Debt service costs are close to 5% of GDP. ”
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