imfBDLive reports that the IMF has warned that the "bloated government wage bill" will have to be slashed, failing which SA will be forced to institute across-the-board budget cuts that would damage growth and hurt the poor.  

The IMF, which has cut its forecast for SA’s growth to 0.1% for 2016 and 1.1% in 2017, raised questions in a report about the country’s ability to meet the fiscal consolidation targets set out in the February budget given the weaker growth outlook.  The organisation’s economists described public sector compensation in SA as "generous", with state wages representing 184% of per capita GDP — well above the emerging market average. The IMF report urged "stricter monitoring of wage and personnel decisions across all spheres of government and a reassessment of the institutional structure for wage negotiations".

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