20°C / 22°C
  • Tue
  • 24°C
  • 10°C
  • Wed
  • 21°C
  • 9°C
  • Thu
  • 23°C
  • 10°C
  • Fri
  • 21°C
  • 10°C
  • Sat
  • 22°C
  • 7°C
  • Sun
  • 20°C
  • 7°C
  • Tue
  • 16°C
  • 10°C
  • Wed
  • 18°C
  • 9°C
  • Thu
  • 18°C
  • 11°C
  • Fri
  • 20°C
  • 12°C
  • Sat
  • 28°C
  • 13°C
  • Sun
  • 22°C
  • 14°C
  • Tue
  • 26°C
  • 11°C
  • Wed
  • 23°C
  • 10°C
  • Thu
  • 24°C
  • 10°C
  • Fri
  • 22°C
  • 11°C
  • Sat
  • 23°C
  • 10°C
  • Sun
  • 21°C
  • 8°C
  • Tue
  • 24°C
  • 8°C
  • Wed
  • 24°C
  • 7°C
  • Thu
  • 24°C
  • 9°C
  • Fri
  • 23°C
  • 8°C
  • Sat
  • 23°C
  • 7°C
  • Sun
  • 22°C
  • 7°C
  • Tue
  • 21°C
  • 18°C
  • Wed
  • 22°C
  • 16°C
  • Thu
  • 23°C
  • 15°C
  • Fri
  • 24°C
  • 16°C
  • Sat
  • 24°C
  • 17°C
  • Sun
  • 24°C
  • 15°C
  • Tue
  • 19°C
  • 11°C
  • Wed
  • 18°C
  • 9°C
  • Thu
  • 18°C
  • 10°C
  • Fri
  • 18°C
  • 10°C
  • Sat
  • 22°C
  • 11°C
  • Sun
  • 28°C
  • 18°C
  • Tue
  • 16°C
  • 9°C
  • Wed
  • 18°C
  • 8°C
  • Thu
  • 19°C
  • 7°C
  • Fri
  • 24°C
  • 8°C
  • Sat
  • 29°C
  • 18°C
  • Sun
  • 25°C
  • 12°C
  • Tue
  • 16°C
  • 11°C
  • Wed
  • 16°C
  • 12°C
  • Thu
  • 18°C
  • 11°C
  • Fri
  • 22°C
  • 10°C
  • Sat
  • 28°C
  • 17°C
  • Sun
  • 25°C
  • 13°C
  • Tue
  • 26°C
  • 9°C
  • Wed
  • 23°C
  • 10°C
  • Thu
  • 24°C
  • 11°C
  • Fri
  • 23°C
  • 11°C
  • Sat
  • 23°C
  • 10°C
  • Sun
  • 21°C
  • 9°C
  • Tue
  • 19°C
  • 6°C
  • Wed
  • 20°C
  • 3°C
  • Thu
  • 22°C
  • 6°C
  • Fri
  • 22°C
  • 7°C
  • Sat
  • 22°C
  • 7°C
  • Sun
  • 21°C
  • 6°C
  • Tue
  • 23°C
  • 9°C
  • Wed
  • 21°C
  • 12°C
  • Thu
  • 24°C
  • 9°C
  • Fri
  • 22°C
  • 11°C
  • Sat
  • 21°C
  • 8°C
  • Sun
  • 21°C
  • 7°C
  • Tue
  • 18°C
  • 9°C
  • Wed
  • 18°C
  • 8°C
  • Thu
  • 18°C
  • 7°C
  • Fri
  • 18°C
  • 8°C
  • Sat
  • 26°C
  • 11°C
  • Sun
  • 30°C
  • 16°C

Mboweni's gesture of goodwill: No pay hike for MPs

While the president’s salary will increase to R3.9 million this year, his executive won’t be getting a cent more.

Finance Minister Tito Mboweni prepares to present his 2019 Budget Speech at the Plenary of the National Assembly. Picture: GCIS.

CAPE TOWN - There will be no pay hike for Members of Parliament (MPs), provincial legislatures and the executives of public entities this year.

Finance Minister Tito Mboweni says it’s a gesture of goodwill as the government looks to rein in its exorbitant wage bill, which now accounts for 34% of national expenditure.

Mboweni says the level of expenditure is unsustainable and public servants will be asked to consider early retirement.

WATCH: #Budget2019 in 60 seconds with Bruce Whitfield

While the president’s salary will increase to R3.9 million this year, his executive won’t be getting a cent more.

Mboweni says the salary bill must be cut by R27 billion over the next three years: “The public-sector wage bill is unsustainable. We must shift expenditure to investment.”

Mboweni has announced a clampdown on overtime and bonus payments for civil servants, as well as pay progression.

“The first step is to allow older public servants, who want to do so, to retire early and gracefully. This will save an estimated R4.8 billion in 2019/20, R7.5 billion in 2020/21 and R8 billion in 2021/22.”

Public Service and Administration Minister Ayanda Dlodlo is expected to outline the details of the early retirement framework in the coming days.

#Budget2019 expenditure breakdown

GOVT TO COLLECT R1.58 TRILLION

This year, the government expects to collect R1.58 trillion, but will spend R1.83 trillion and will have to borrow the R243 billion shortfall.

A tough-talking Mboweni spelt out what this means: “Put another way, we are borrowing about R1.2 billion every day assuming that we don’t borrow on weekends because of the Soweto derby.”

Interest costs will top R209 billion: “This is R1 billion a day.”

It also means the debt to GDP ratio will break the 60% mark for the first time.

But the finance minister remains upbeat: “Restoring our finances and fixing our state-owned enterprises will take great courage. But it can be done.”

(Edited by Mihlali Ntsabo)

Comments

EWN welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

- Racism (including offensive comments based on ethnicity and nationality)
- Sexism
- Homophobia
- Religious intolerance
- Cyber bullying
- Hate speech
- Derogatory language
- Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the EWN community a safe and welcoming space for all.

EWN reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

EWN is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

comments powered by Disqus