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I read a recent article in the Financial Mail indicating that between 2005 and 2012 money paid to state employees went up by 76%. The total bill for government employees has gone from 31,7% of government revenue in 2008 to 42,2% by 2012. The social grants we give out have gone from 12,6% to 14,2% which means, just between grants and what government employees are paid, that takes up 56,4% of all taxes that are raised. In other words, everything else – education, public health, police, the defence force, etc – are all paid from 43,6%. At the current rate, according to research done by Professor Rousseau, head of the Wits University School of Economic and Business Sciences, by the year 2026 – which is only 12 years away – social grants and state jobs will account for all government revenue. They estimated if that was increased by 1%, company tax by 3%, fuel by 10% and personal tax for example increased to 50% at the top rate, that that would only buy us another two or three years. It is no wonder that many years ago Trevor Manuel warned that the grant system was not sustainable, and that Pravin Gordhan said that we cannot afford to continually give above inflation wage increases to civil servants. At the moment, nothing short of some amazing windfall, from the discovery of some sort of rare mineral and the taxes we are going to earn on it, is going to save us from what is a disastrous economic future between strikes from government employees for more wages and rapidly increasing taxes for everyone else.
Posted by Michael de Broglio on Thursday 30-Oct-14
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Comments
Lourien said:
on Monday 03-Nov-14 10:53 AM
What can we expect from our government except to increase their own salaries, not worrying about the education of the youth or even public health has not gone up half as much as their salaries in the past few years, And we would think they would only be paid what they are worth and need, what do they do with the money instead on throwing big parties and driving their fancy cars, they only think of now and how much tax money they can take for themselves ...
Jade said:
on Friday 31-Oct-14 04:05 PM
I am sure it will now level itself out and not continue to increase as dramatically as it has. This just seems to be a shift that Government is taking in a more socialist direction (with regards to the grants), and perhaps an attempt to attract and retain better quality employees in state positions.
Elektra said:
on Friday 31-Oct-14 03:27 PM
It does not matter who says what, and what proof you put forward to the Government, he doesn't care, he is only there to help himself and not this country. The more he can take the better. When are the parties going to stand together and remove him as President???
Sarah said:
on Friday 31-Oct-14 11:27 AM
That is our government for you. It doesn't surprise me at all.
Caron said:
on Thursday 30-Oct-14 01:40 PM
TISA
Lucretia said:
on Thursday 30-Oct-14 01:24 PM
I cannot understand why the likes of Trevor Manuel and Pravin Gordhan cannot get this through to Government. How stupid can one be that you appoint someone for a position who is there to advise you on the way forward and then you turn a blind eye to their advise. The entire Government department should be given the book "Africa the Shackled Continent" to read. In there it explains why the African continent is going down hill.
Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!