South Africa’s excessively large public service is putting great pressure on treasury and it is the one aspect that should definitely receive attention in this year’s budget, Dr. Pieter Mulder, leader of the Freedom Front Plus says.
Dr. Mulder says a moratorium should be placed on new appointments and especially on appointments from the private sector lured to the public service with exorbitant salaries.
He said huge salary increases and so-called performance bonuses can also not be afforded any more.
“Claims for a general salary increase of about 15% for the public service are not feasible and will economically cripple South Africa in its current poor financial position. A sensible increase would be equal to inflation plus 1%.
“Social grants are another insatiable sponge which is placing a huge burden on treasury and this also cannot be allowed to keep on increasing indefinitely. Experts are already estimating that grants and the public service account could take up the country’s whole budget by the year 2026 if it is not halted now.
“If attention is given to this, it will not be necessary to increase income tax,” says Dr. Mulder.
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