Answer to Question #199156 in Microeconomics for Anita

Question

Discuss South Africa’s focus on the public sector wage bill as an expenditure control measure

Answer 1

Answer:

South Africa Public Wage bill refers to amount of money that the government is supposed to be pay to all its civil servants in a month.

Expenditure control measure is a restriction by the government which ensures to the public that the public resources are spent within the authorities as intended and planned by the government. The use of the public resources follow specific set financial management principles.

Wage bill in South Africa becomes topical because SA wanted to freeze wages of the public sector.

It was going to happen in the coming three years in order to cut the salary bill and contain the yawning deficit in budget. This issued the risk of strikes by 1.3 million public sector taskforce.

South Africa focuses on the wage bill because it spends approximately one third of its budget on the government spending salaries. The spending is expected to be increase. The increase started after the end of the apartheid where the government of South Africa sought to empower millions of disadvantaged black people. This was done by placing the people in the public sectors.