The Citizen reports that government’s announcement ahead of the long weekend of a 4.7% salary increment might have been good news for public servants, but economists reckon otherwise.
Department of Public Service and Administration (DPSA) Minister Noxolo Kiviet advised on Tuesday that non-senior management (SMS) workers whose salaries fell within levels one to 12 of the pay-scale would get a 4.7% salary bump up from 1 April. Despite acknowledging the purpose of the increase amid record high inflation, economic analyst Bonke Dumisa said the increment could hurt the government’s pockets. “We can’t afford it,” Dumisa said, explaining the public wage bill was already high. Echoing Finance Minister Enoch Godongwana, Dumisa said government debt levels were alarming and questioned whether increasing government expenditure was a smart move. “South Africa is operating at huge budget deficits and has been for many years. These budget deficits are the cause of the continuous high inflation rate. Hence, when public servants get salary increases, that feeds more inflation. We must remember that the current South African government debt of over R5.3 trillion which will balloon to over R6 trillion by 2026 must be paid. There are many other service delivery challenges the government faces, but there’s no money,” Dumisa pointed out. He said workers at the low end of the spectrum were likely to feel inflationary pressure most and they should perhaps be the primary focus.
- Read the full original of the report in the above regard by Vukosi Maluleke at The Citizen
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