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Johannesburg - The rising salary bill of the South African public service and increase in appointments in this sector will put tremendous pressure on the National Budget for 2014/15, the Afrikaanse Handelsinstituut (AHi) said on Wednesday.
In the light of the expected drope in state income and the pressure on the state to fulfill its obligations, the AHi has made an earnest appeal to government to curtail the escalation of state expenditure.
In addition, Treasury, the South African Revenue Service (Sars) and the department of public service and administration should put pressure on the state to reduce its salary bill and its appointments.
This would make more funds available for infrastructure development and related economic activities. It would also create opportunities for further investment by the private sector as well as thousands of job opportunities.
Of great concern is the number of state departments, which have increased from 33 to 37 since 2005.
According to Statistics SA, public service appointments in the central government increased from 385 441 in 2006 to 443 199 in 2012. This represents an increase of about 13%.
Treasury figures
Even more troubling to the AHi are the appointment figures in the provincial government sector.
The number of provincial public service employees increased from 860 580 in 2006 to 1 075 515 in 2012.
Treasury figures also indicate that the state’s average salary increments since 2006 have exceeded the average inflation rate. State employees are better off than some of their peers in the private sector.
Finance Minister Pravin Gordhan agrees that this situation poses definite risks for the country’s fiscal sustainability.
A further issue of importance to the AHi is the high debt burden of many state employees, and the adverse impact it has on the morale of many who are unable to finance the day-to-day expenditures of their households.
In this regard, the departments will also have to stress the importance of financial discipline and saving, the AHi said in a statement.
The AHi is also of the opinion that the state must scale down the appointment of office-bound senior officials and instead use the in-house expertise in schools, hospitals and other state institutions to transfer specific skills and knowledge to their colleagues.
Monitoring and evaluating productivity levels as well as the quality of service rendered by state employees should also be prioritised to bring about higher accountability levels.
In the light of the expected drope in state income and the pressure on the state to fulfill its obligations, the AHi has made an earnest appeal to government to curtail the escalation of state expenditure.
In addition, Treasury, the South African Revenue Service (Sars) and the department of public service and administration should put pressure on the state to reduce its salary bill and its appointments.
This would make more funds available for infrastructure development and related economic activities. It would also create opportunities for further investment by the private sector as well as thousands of job opportunities.
Of great concern is the number of state departments, which have increased from 33 to 37 since 2005.
According to Statistics SA, public service appointments in the central government increased from 385 441 in 2006 to 443 199 in 2012. This represents an increase of about 13%.
Treasury figures
Even more troubling to the AHi are the appointment figures in the provincial government sector.
The number of provincial public service employees increased from 860 580 in 2006 to 1 075 515 in 2012.
Treasury figures also indicate that the state’s average salary increments since 2006 have exceeded the average inflation rate. State employees are better off than some of their peers in the private sector.
Finance Minister Pravin Gordhan agrees that this situation poses definite risks for the country’s fiscal sustainability.
A further issue of importance to the AHi is the high debt burden of many state employees, and the adverse impact it has on the morale of many who are unable to finance the day-to-day expenditures of their households.
In this regard, the departments will also have to stress the importance of financial discipline and saving, the AHi said in a statement.
The AHi is also of the opinion that the state must scale down the appointment of office-bound senior officials and instead use the in-house expertise in schools, hospitals and other state institutions to transfer specific skills and knowledge to their colleagues.
Monitoring and evaluating productivity levels as well as the quality of service rendered by state employees should also be prioritised to bring about higher accountability levels.
