Better than expected tax revenue and slashing the infrastructure fund, that is how the government managed to scrape together R20bn to increase salaries of public servants.
The 2018 wage bill agreement that deals with salary increases is currently before the Constitutional Court awaiting an outcome.
Godongwana said should the outcome of the ConCourt judgment be in favour of unions and compel the government to implement it, the increases would have an adverse effect on the fiscus. Economists were divided on the policy speech, with some calling it a balancing act and others agreeing with Godongwana that it was unsustainable.
“But also the government has to cater for the welfare of its employees. This will prevent strikes from happening and bringing the country to a standstill. It's a balance,” Kapingura said.
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