PUBLIC WAGE BILL, DEBT CONSTRAINTS, AND SERVICE DELIVERY COMPETITION FOR LIMITED PUBLIC FUNDS: SOUTH AFRICAN GOVERNMENT

Abstract

The National Treasury, together with the Provincial Treasurers, are the custodians of public finances and they are responsible for budgeting for the national and provincial government departments. Currently, they are facing a major battle to rescue the public sector from the over bloated public wage bill and debt that is growing at a faster pace each day and bearing serious consequences on service delivery. This has the potential to cripple the public sector in the Republic of South Africa. The mandate of the South African government is to provide effective and sustainable public service delivery to ensure uninterrupted access of goods and services to the occupants of the country, the public wage bill and debt has overcrowded public service delivery and limited funds are used to fund the wage bill and to service the debts. This paper seeks to determine the strategies that could be employed by the government to ensure the sustainability of public service delivery. Sustainability of public service delivery is crucial in South Africa; hence it has higher levels of inequality, higher unemployment rate and more citizens live below the poverty line and depending on the government for basic services provision. South African government cannot have limited funds and higher burden of citizens who are dependent on the state, such bloated wage bill and debt must be dealt with according to prioritise service provision.

Keywords

• government
• public debt
• service delivery