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Alec Hogg – SA Budget’s dirty secret
'Tito and Cyril are facing their Thatcher moment. They will need to draw on their inner Iron Lady to tame SA’s public sector wage monster', says Alec Hogg.
This graph published in Treasury's 2021 Budget Review released yesterday, speaks louder than 1,000 words. South Africa's public servants cost taxpayers proportionately double those in Ireland, Korea and Switzerland – 50% more than the UK and USA. Indeed, in cost they rank alongside the Nordics. Ouch.
This excessive burden is a direct consequence of the Zuma Administration's economic idiocy which raised public sector salaries an average of 4% above inflation annually over the past decade. This compares with a private sector which had to cope with anaemic 1.5% annual GDP growth over the same period.
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