The Treasury has put the screws on public sector employment by cutting the operational budgets of departments in the hope that 25,000 jobs will be lost through attrition over the next three years — this follows a reduction by the provinces of 20,000 posts over the past three years. The public sector wage bill has been a binding constraint on the budget, consuming 40% of it and growing at a pace that has far outstripped inflation. Cutting wages is at the top of the list of credit ratings agencies who have warned that the budget needs to be restructured. The numbers of public servants grew 20% between 2006 and 2011. While the Treasury has fastidiously avoided retrenchments, the adjustments to the budget over the next three years will compel departments to reduce their headcounts. Operational budgets have been cut 1.2% across the board. Worst affected will be the police, defence force and criminal justice system.
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