Cash sweetener for public servants to cost R18bn

The cash offer to government employees, which was improved upon last week, will cost the government about R18bn that has not been budgeted for and will have to be sliced from departmental budgets to avoid busting the fiscal framework, says the Treasury.

Economists and ratings agencies are closely watching the negotiations around public service salaries, because reining in the wage bill is seen as key to stabilising government finances...