Cutting public-sector wages in a bid to appease rating agencies, Finance Minister Tito Mboweni on Wednesday delivered the 2020 Budget Speech in Parliament Cape Town.
Minister Mboweni stressed the need to reaffirm the government’s commitment to close the gap between spending and revenue, implementing a plan for stronger economic growth and cooperation between government and the business sector.
That should keep the rating agencies that want to downgrade SA’s debt position to junk status temporarily at bay.
In its Budget Review, Treasury has proposed cuts to the wage bill of R37.8 billion in 2020/21, R54.9 billion in 2021/22 and R67.5 billion in 2022/23.
ALSO READ: Full Text of SA’s Budget Speech 2020
The intervention comes as the state attempts to reduce high spending on salaries in the sector.
The highlights of the 2020 budget are: