Finance minister Enoch Godongwana said a run-away public sector wage bill was one of the domestic risks facing government finances in an uncertain economic environment.
Esa Alexander/Sunday Times
This means that current finance minister Enoch Godongwana would have to ensure that government departments reprioritise and shift funds around to finance the payment of the gratuity. Godongwana disclosed this to parliament on Thursday when he tabled his maiden Medium-Term Budget Policy Statement , which sets out government’s spending priorities for the next three years.
“In 2021/2022, the gratuity will be largely funded by additional revenue, and will require shifting funds from the infrastructure fund, with provisional allocation of R20.5bn for 2022/23 included in the fiscal framework.” Godongwana said should the ConCourt go in that direction, the move would be disastrous to government finance as they would have to “implement the agreement retroactively.”
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