State spending is sustainable
DESPITE rising debt levels and increased social spending, South Africa is on a sustainable fiscal path, Deputy Finance Minister Nhlanhla Nene said yesterday.
Social expenditures, which include assistance grants and health and education spending, account for 58% of government expenditures compared with 49% 10 years ago.
The number of social grant beneficiaries reached 15,6-million in March 2012, Nene said.
"Preliminary indications are that the trajectory of social spending as it currently stands in the budget is sustainable," he said.
Nene said South Africa needed to stabilise the growth of the country's debt, currently standing at about 35% of gross domestic product and reiterated that the growing government wage bill was of great concern, citing it as the second-fastest growing component of spending.
"This would not be a problem if productivity of public officials were also rising strongly, but we know that government falls short on many fronts where service delivery is concerned," Nene said.
DIGS: Nhlanhla Nene, Cas Coovadia, Sizwe Nxasana.
PHOTO:VELI NHLAPO.

Comments
cornelius
" Government wage bill is of concern ' So what does one do about it ? Sit around being concerned ? Or crack the whip, insist on higher productivity, fire the ones that can't produce, hire people that can, not people who are poltically connected ?Report Abuse
Lehido
So says the fat guy who fell off a chair at SABC.......Go to youtube and serach it you will see it....LMAOReport Abuse
Mrazane
Eish Lehido at least I feel better now, I thought I was the only one who always thinks of that incident when I see Nhlanhla Nene. Hahahahahahahahaha I laughed for more than a month, I watched that clip so many times and it never fails to have me rolling on the floor with laughter. Sorry Mr Chair somethings will never be forgotten...hade.Report Abuse
Mrazane
Ene they gave him such a serious post, its not right yazi....they should have put him ku Arts and Culture kube na some link to entertainment! ROTFLReport Abuse
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