The Treasury has made it clear that government departments will have to find the money to pay the extra R37.4bn needed to fund the latest public service pay deal by shedding jobs, cutting programmes and tackling exorbitant pay increases in public entities that receive public funds.

In a statement on Friday evening after unions representing public sector workers signed a two-year pay deal with the government that will give them a 7.5% increase this year, the Treasury said it will not increase government borrowing to fund unbudgeted wage increases...

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