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WAGE BILL SWALLOWS BUDGET
Diamond Field Advertisers
|March 28, 2025
WITH the wage bill eating the largest chunk (73 percent) of the Northern Cape budget, little has been left for necessities such as school feeding schemes, learner transport, and school operational costs.
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Delivering her provincial budget speech this week, the MEC for Finance, Economic Development and Tourism, Venus Blennies-Magage, stated that the compensation of employees would cost R13.4 billion in the 2025/26 financial year.
She indicated that the salaries of the Education and Health sectors alone accounted for 79 percent of the personnel budget.
Blennies-Magage said that R392 million would be allocated to improving conditions of service, where a 5.5 percent salary increase had been negotiated nationally for public servants, effective from April 1.
“However, the national fiscus only provided funding for one percent, with departments expected to absorb the shortfall. This places a significant strain on labour-intensive departments such as Health and Education.”
Dit verhaal komt uit de March 28, 2025-editie van Diamond Field Advertisers.
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