National Treasury director-general Dondo Mogajane has said that the best way to fund the bailout of failing state-owned enterprises could be to cut the salaries of all government employees by 10%, according to a report in the City Press.
The government has to find a way to close a R120-billion hole in its budget, which is the result of acceding to a R59-billion bailout for Eskom as well as a shortfall in tax revenue for the fiscal year ended March 2020.
“National Treasury’s box is empty,” Mogajane said to the City Press.
“Growth is not coming through and tax revenues are not there. We are in trouble. The government needs to reduce spending.”
“If we are going to be serious – without people losing their jobs – let us reduce the salaries and stop the bonuses,” Mogajane said.
In response to this plan, unions said that they would not accept the revocation of bonuses and salary cuts for their workers.