Johannesburg – The latest Statistics SA (Stats SA) figures released on Wednesday suggest social grants and a large public service are taking their toll on government coffers.
Stats SA’s Financial Statistics of National Government report showed the government’s cash payments for operating activities rose by R60.5bn to R791.9bn in 2010-11‚ from R731.3bn in 2009-10‚ mainly due to an increase in grant payments and employee compensation.
The seven main economically classified cash payments for operating activity categories are: compensation of employees; purchases of goods and services; interest; subsidies; grants; social benefits; and other payments.
The largest contributor to the rise in total cash payments for operating activities was grants‚ at R468.9bn; followed by social benefits‚ at R91.4bn; and compensation of employees‚ at R87bn.
SA’s tax base continued to come to the rescue in the 2010-11 financial year‚ figures suggested.
An increase mainly in collected taxes led to a R76.8bn rise in government’s cash receipts from operating activities to R688.3bn.