Wage Bill Swallows Bulk Of Windfall – Godongwana Issues Medium-Term Budget

The economy has made a better than expected recovery during the first half of the year and revenue is up by R120.3 billion. But Enoch Godongwana warns the windfall, largely as a result of mining, is temporary.

A revenue windfall would help with the social relief of distress grant.  

But it’s little comfort amid the soaring debt that’s throttling public spending and an energy crisis that’s stifling economic growth. 

These were the main points of Finance Minister Enoch Godongwana’s maiden Medium-Term Budget Policy Statement.

The largest portion of more than R59-billion in adjustments will, however, be going towards the public sector wage bill.

Godongwana’s standing firm on state-owned enterprises and says it’s time to practice “tough love”.