Cape Town - Not much can be done about wage increases in the public sector and plans need to be modified accordingly," said Finance Minister Pravin Gordhan, on Tuesday.
"We had budgeted for 6% - which was a bit on the low side - and we have to take account of the increases," said Gordhan during a media briefing prior to delivering his inaugural Medium-Term Budget Policy Statement in parliament.
Public sector wage increases have been above 20% in South Africa this year, while private sector increases dwindle below 10% in the face of the first recession in 17 years.
As to who is leading economic policy in South Africa, Gordhan said it is better left to President Zuma to make pronouncements on this issue.
"We need a process initiated and he will indicate how he sees that process working," said Gordhan.
- I-Net Bridge