The Eastern Cape Government has acted to cut down on personnel expenditure saying that all new staff recruitments “must be restricted to creating capacity...

The Eastern Cape Government has acted to cut down on personnel expenditure saying that all new staff recruitments “must be restricted to creating capacity to deliver on infrastructure or capital spending”.
The Budget Review tabled with the Provincial Budget today, states that in particular this must apply to the departments of Education, Health, Human Settlements and Public Works.
The Review says that in real terms “the fastest growing component of current expenditure over the past decade has been the government’s wage bill”.
The wage bill will account for 64% of total spending in the 2012/13 financial year.
The cumulative growth rate of the salary bill between 2008/9 and 2014/15 is 74%.
The Budget Review says that the only way in which to improve fiscal stability and “flexibility of discretionary spending” is by curtailing the expansion of the organograms in departments like Education and Health as well as “arbitrary increases in salary levels.
“The importance of departmental organogram reviews, which are in line with the national departmental guidelines, has to be entrenched.”
In addition, all departments will have to bring personnel expenditure under control.

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