Government is spending more money on paying its employees than providing goods and basic services in the country’s economy‚ a report by Statistics SA showed on Thursday.
Government spending on compensation of employees increased by over R40-billion from R473-billion in 2013/14 fiscal year to R514-billion in the 2014/15 fiscal year.
This means government spent more money paying its employees than actually procuring goods and services to be delivered to the people of South Africa.
This is contained in the Financial Statistics of Consolidated General Government for the 2014/15 fiscal year released by Stats SA on Thursday.
The report contains statistics on the South African government’s income and expenditure for the financial year ended 31 March 2015. It provides detail on the sources of income from all levels of government‚ such as taxes‚ social contributions‚ and “other” receipts. It also explores various expenditure items‚ including compensation of employees‚ interest paid on loans‚ social benefits‚ grants and subsidies.
The report showed that the R40-billion increase in compensation of employees was due to an increase in the wage bill of provincial governments‚ which shot up by R18-billion.
This was followed by national government surging by R8.5-billion‚ municipalities up by R7.7-billion‚ extra-budgetary accounts and funds by R3.9-billion‚ and the higher education institutions with an increase of R2.4-billion.
Extra-budgetary accounts refer to accounts and funds of national and provincial governments not included in normal budget totals and which do not operate through normal budgetary procedures such as trading accounts and general government accounts.
It showed that government spent over R159-billion on social benefits‚ R122-billion on interest‚ R87-billion other payments‚ R53-billion on grants and R24-billion on subsidies.
Cash receipts from operating activities increased by R107-billion from R1.11-trillion in 2013/2014 to R1.12-trillion in 2014/2015‚ mainly due to an increase in taxes collected.
The largest contributor to total cash receipts from operating activities for the 2014/2015 fiscal year was taxes at R1-trillion‚ followed by other receipts at R138-billion‚ social contributions (R22-billion) and grants (R2-billion).
The increase of R94-billion in cash receipts was mainly due to increases in taxes paid by individuals‚ VAT on goods and services‚ and taxes paid by businesses.
The R12-billion increase in other receipts‚ from R126-billion in 2013/2014 to R138-billion in 2014/2015‚ was mainly due to increases of R3.8-billion in sales of goods and services by the municipalities (rates and general services)‚ R3-billion by universities and R1.9-billion received in interest by national government. – TMG Digital
Government wage bill surges to R514-billion: Stats SA
Government is spending more money on paying its employees than providing goods and basic services in the country’s economy‚ a report by Statistics SA showed on Thursday.
Government spending on compensation of employees increased by over R40-billion from R473-billion in 2013/14 fiscal year to R514-billion in the 2014/15 fiscal year.
This means government spent more money paying its employees than actually procuring goods and services to be delivered to the people of South Africa.
This is contained in the Financial Statistics of Consolidated General Government for the 2014/15 fiscal year released by Stats SA on Thursday.
The report contains statistics on the South African government’s income and expenditure for the financial year ended 31 March 2015. It provides detail on the sources of income from all levels of government‚ such as taxes‚ social contributions‚ and “other” receipts. It also explores various expenditure items‚ including compensation of employees‚ interest paid on loans‚ social benefits‚ grants and subsidies.
The report showed that the R40-billion increase in compensation of employees was due to an increase in the wage bill of provincial governments‚ which shot up by R18-billion.
This was followed by national government surging by R8.5-billion‚ municipalities up by R7.7-billion‚ extra-budgetary accounts and funds by R3.9-billion‚ and the higher education institutions with an increase of R2.4-billion.
Extra-budgetary accounts refer to accounts and funds of national and provincial governments not included in normal budget totals and which do not operate through normal budgetary procedures such as trading accounts and general government accounts.
It showed that government spent over R159-billion on social benefits‚ R122-billion on interest‚ R87-billion other payments‚ R53-billion on grants and R24-billion on subsidies.
Cash receipts from operating activities increased by R107-billion from R1.11-trillion in 2013/2014 to R1.12-trillion in 2014/2015‚ mainly due to an increase in taxes collected.
The largest contributor to total cash receipts from operating activities for the 2014/2015 fiscal year was taxes at R1-trillion‚ followed by other receipts at R138-billion‚ social contributions (R22-billion) and grants (R2-billion).
The increase of R94-billion in cash receipts was mainly due to increases in taxes paid by individuals‚ VAT on goods and services‚ and taxes paid by businesses.
The R12-billion increase in other receipts‚ from R126-billion in 2013/2014 to R138-billion in 2014/2015‚ was mainly due to increases of R3.8-billion in sales of goods and services by the municipalities (rates and general services)‚ R3-billion by universities and R1.9-billion received in interest by national government. – TMG Digital
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