SA’s R120 billion deficit: Cut public servants salaries by 10%?

Die Vryburger

SA’s R120 billion deficit: Cut public servants salaries by 10%?
SA's R120 billion deficit: Cut public servants salaries by 10%? Photo: Die Vryburger

The distressed position in which SA finds itself on the financial front is again highlighted by the fiscal crisis being compounded by the allocation of more money to the bankrupt Eskom power supplier. Treasury needs R120 billion and is desperate to close the huge hole, but SA’s finances are in such a mess that the country is now in serious trouble.

Addressing the serious shortfall, without making even more debt, would be to consider the 10% reduction in salaries and wages of all public servants. This is the warning that the Treasury Director-General, Dondo Mogajane, has addressed to the government and civil servants.

He allegedly disclosed that the ANC government has a deficit of R120 billion due to the allocation of R59 billion to power provider Eskom, which is constantly in a financial mess.

However, observers believe the reduction in officials’ remuneration will lead to unprecedented resistance, and may even mean that the government could fall.

Read the original article in Afrikaans on Die Vryburger

South Africa Today – South Africa News

SOURCE Die Vryburger