KZN’s compensation budget to be cut by R5.3bn

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KwaZulu-Natal's provincial compensation budget will be cut by R5.3 billion, leading to wage cuts for government workers, a move that has garnered mixed reaction from political parties.

According to the National Treasury presentation, the net reduction of the provincial budget cut translated to a figure of R3.8bn after a R1.42bn boost from the presidential employment initiative and R103.5 million in food relief. The cut forms part of the National Treasury’s net reduction in spending of R17.8bn across the provinces.

“We need to come up with austerity measures and cut the frills and spend the money where it matters, which is service delivery to the people. We understand there are challenges but we will make sure we compel the government to stick to spending where it matters most,” he said. “For some time now we have bemoaned the bloated bureaucracy within our province – one which has certainly not morphed into a capable and ethical state,” he said.

He added that KZN was also facing a reduction in critical provincial conditional grants in order to fund the R10.5bn SAA bailout. He said it was “odd” that the government kept on bailing out SAA yet continually reduced municipal finances.

 

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Government must make cut in executive officers whose benefiting from unnecessary costs like credit cards and expensive fleets.

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