When Finance Minister Enoch Godongwana tabled his budget less than six months ago, he was calm in the face of criticism.
Bank and academic economists criticised him for not inking in a wage increase for public servants, which implied that the numbers in the budget were not credible. Godongwana did it this way to show public sector trade unions that he had not pre-empted wage negotiations. It was a bid to address their long-standing complaint about the government's approach to collective bargaining.
In the end, the increase in the wage bill was 7.5%, which means that another R37.5 billion of expenditure will have to be squeezed out of existing budgets. Get 14 days free to read all our investigative and in-depth journalism. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed.
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