Tough decision as strike bites
Sep 2, 2010 |
Penwell Dlamini |
13
comments
GOVERNMENT will have to increase taxes or reduce spending on infrastructure development to meet the demands of public servants, a top economists warned yesterday.
While the strike has already cost the economy an estimated R25billion, it would still be difficult for the government to raise the capital to meet the unions' demands.
Efficient Group economist Dawie Roodt said the Treasury's budget for salary increases this year would have to be increased by an additional R6billion to meet public sector unions' demands.
The unions are demanding a 8,6percent salary increase and R1000 housing allowance. The government has offered a 7,5percent salary increase and R800 housing allowance.
"There is current expenditure that used to pay salaries and capital expenditure that the government spends on infrastructure," Roodt said.
"When current expenditure increases ministers will have to cut on capital expenditure or infrastructure.
"This means the government has to get money from somewhere else.
"That means increasing taxes or reducing infrastructure development."
Sep 2, 2010
tumitumi
They should just reduce infrastructure development, taxes are high already, and with all this unnecesary tollgates everywhere, life is not getting any better.Report Abuse
Sep 2, 2010
Makonese
Government should also reduce their ministerial vehicle allowances and downgrade to 3-star hotels. They're ridiculous. In this country, if you want to be rich you must become a politician or someone in your family/circle should be a politician. No wonder the masses/workers are gatvol.Report Abuse
Sep 2, 2010
kamu
That one of increasing taxes is normal because the moment they increase your salary your taxes increase as well.Report Abuse
Sep 2, 2010
CheeseBoy
If there is a group of people going directly to hell, its lawyers, politicians and economists.These are the same group of people who were caught with their pants down when the recession tsunami hit the world. These are the same group of people who come out on tv and blatantly lie to the public about how SA is recovering from the recession when the evidence proves otherwise.
And now the same bastards are talking about increased taxes and reduction in infrast. development to meet the demands of public slaves.
That is all Bull, anybody who is swallowing this garbage needs checking upstairs. I would not be surprised if these economists got an envelope from the ANC for making such a blatant lie. The money is there. The money is being wasted and stolen by the ANC. They not even hiding it, its in your face.
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Sep 2, 2010
emzet1
What infrastructure development? we knw that we only witnessed infrastructure development recently because of WC. general infrastructure has not been their priority except where it meant tenders for their friends & comrades. I say they must just pay workers finish and klaar.Report Abuse
Sep 2, 2010
Dabongz
How many ANC cronnies got bmillion of tenders from govt n cud not deliver and govt had to retender to competent contractors. There are contractors who are paid millions b4 they cud actually carry out the job, but just disappear. Malema's bridge fell apart n million gone, Brian Hlongwa smart card million gone, Mashatile's motor sport millions gone, Selebi trial millions gone, Mcbride's legal fees millions are going, and so on and so onoooonnnnnnoo. How much does it add up to?Report Abuse
Sep 2, 2010
tereblanche
vote of NO confidence to zuma and his cabinet,the time has come to deliver and they have failed,no more jika majika zuma,lets see what you are made off,education is very important you are a good example of that.please dont deny our future generation that bcoz u dont have it.Report Abuse
Sep 2, 2010
FreshIdAss
The government does not have to reduce either Dawie Roodt.How about eliminating wastage e.g. R97 bn spent on conferences, team builidng and christmas parties in the last financial year?, buying 50 TVs for R1.5m, trade in the S500s for the modest C200s? cutting down on ministers flying around the country like headless chickens under pretext of "ássesing situations''? if they increase the taxes, we will take it to the street like our neighbours in nMozabique and we will make this country ungovernable.Report Abuse
Sep 2, 2010
MzansiBoy
Did the government have to increase any taxes when they awarded themselves gigantic salaries and increases for this year? Zuma's salary is at R2m. We are already taxed to death, funding Zuma's harem and his gold digging wives - except for MaKhumalo, as well as all other other baby makers who do so expecting child support grants. What do all those young women see in him really other than state perks and travelling around in a jet to see the world? Only recently one of them cheated on him and fell pregnant.No tax increases! If they can afford to buy luxury cars using our tax, spent millions on soccer world cup tickets, they can also afford to pay the public servants somehow without coming to us for more tax.
I agree with Makonese, let downgrade their AMG's to c-classes and there'll be more than enough to pay to the public servants what the latter deserve.
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Sep 2, 2010
Nocomment
Thy must also cut their big salaries nd gv it to hard workng teachers nd nurses,those ministers earn a lot for nthng.Report Abuse