Johannesburg - Government would not be able to improve service delivery should it concede to the wage demands of striking workers, spokesperson Themba Maseko said on Thursday.
Briefing the media following cabinet's fortnightly meeting on Wednesday, Maseko said cabinet was disappointed with the unions' rejection of the state's offer of a seven percent annual increase and R700 a month housing allowance.
"The offer is already way above the inflation rate of 4.5 percent," he said.
The state's final offer represented a move from the original offer of 5.2 percent and a R500 a month housing allowance.
While government fully understood and appreciated the plight of public servants regarding low wages, it had to be mindful of its responsibilities to all South Africans as the final offer already placed a huge burden on the fiscus.
"We had to make a choice between increasing the salary bill to unaffordable levels by meeting the union demands and cutting other urgently needed services," said Maseko.
"It's a choice between improving the wages of state employees and continuing to address the service delivery needs of poor communities and the unemployed."
The final offer would have a carry through effect of a further R2.7bn in the 2011/12 financial year.
"The 8.6 percent demand is simply not affordable as every additional cent spent on salaries means less money for other essential services to the public."
Increasing personnel spending meant there would be less money for education, learning materials, healthcare and health facilities, medicines, roads, economic infrastructure and other essential services that were part of government's electoral mandate.
"It also means we cannot employ more teachers and nurses."
Government believed it would be unwise to borrow money to finance current spending, as this would continue to place an untold debt burden on future generations.
Maseko said it was not true that government was insensitive to the plight of public servants who promoted essential services such as teachers, nurses and doctors.
The Occupation Specific Dispensation was introduced in the public service to ensure that professionals were remunerated according to skill and expertise.
Government would continue to strive for the improvement of the working conditions of its employees within reasonable bounds, he said.
Exploring sustainable approachesCabinet noted there was a need to explore other sustainable approaches to assist South African workers in general who could not access housing loans from the banks due to low wages, and to narrow the gap between public and private sector salaries.
Government was willing to discuss this challenge with the unions after the resolution of the current impasse, he said.
Measures were already under way to reduce spending in government departments to fund the final offer.
The ministerial committee on reducing wastage was in the process of finalising its proposals on cost-cutting measures.
The Minister's Committee on the Budget would finalise spending guidelines for the next financial year with a view to regularising austerity measures across the state departments in all spheres, Maseko said.
Cabinet condemned unreservedly the violence, intimidation and the acts, bordering on thuggery and criminality, that had characterised the strike in parts of the country.
While the majority of public servants had protested peacefully, the disruption of classes and health facilities was totally unacceptable and would not be tolerated.
Those who broke the law should not expect any sympathy from the law enforcement agencies.