Finance MEC promises to chop NC wage bill

• Published date: 11 March 2022
• Author: Sandi Kwon Hoo sandi.kwonhoo@inl.co.za
• Publication title: Diamond Fields Advertiser

He highlighted how it was necessary to contain spending on the compensation of employees as well as the goods and services budgets

“In response to the government's wage freeze directive in the 2020/21 financial year, departments’ compensation of employees’ budgets have been rebased by using the 2021 baseline and adding back 1.5 percent over the medium-term expenditure framework (MTEF) in line with the National Treasury guidelines,” said Vosloo.

He stated that expenditure budgets would be prioritised to stimulate economic growth.

“Therefore, it is necessary for departments to continue to contribute towards maintaining the current wage bill ceilings.

“The 2021 wage agreement included a once-off non-pensionable cash gratuity payment to all public servants in government. Funds are set aside in the 2022/23 financial year to fund the carry-through costs of this cash gratuity in the absence of a new agreement.”

The total budget of the Province over the next three years will amount to R60.3 billion.

“Despite a net reduction of R24 million over the MTEF, an additional amount of R1.8 billion is added to provide for various policy interventions including our response towards the COVID-19 pandemic. In the main, these interventions are targeted at health and education. Furthermore, an additional amount of R367.8 million has been added for the 2022/23 wage agreement.”

Vosloo stated that the net effect of these adjustments on the fiscal framework resulted in a net surplus that was derived from the unallocated wage agreement carry through costs, as well as funds set aside towards the debt redemption strategy.

“The Department of Transport remains the main driver behind the own revenue of the Province with motor vehicle licences being the main collection item.”

He added that R8.9 million would be allocated for infrastructure over the medium-term expenditure framework (MTEF) of which R 2.9 billion would be spent in the 2022/23 financial year, R 2.9 billion in 2023/24 and R3 billion in 2024/25 financial year.

“The Department of Education will be delivering on maintenance at identified schools as well as the construction of additional classrooms and replacement schools such as Oranje Oewer Replacement School, the Petrusville Primary Replacement School, the Carlton van Heerden Replacement School and the construction of a New Kimberley English Medium School.”

Vosloo said the Department of Health would implement maintenance and refurbishment projects at all health-care...