The Strategy Formulation to Confine the Escalating Wage Bill: A Case of Limpopo Provincial Government
1. INTRODUCTION 2. LEGISLATIVE INSIGHTS 2.1 Public Finance Management Act (PFMA), 1999 (Act No. 1 of 1999) 2.2 Treasury Regulations 2.3 Public Service Regulations (Government Notice No. R.1 of 5 January 2001 as amended). 2.4 Public Service Act (RSA, 1994) and the Public Service Amendment Act (RSA, 2007) 3. LITERATURE REVIEW 3.1 The global analogy of the public sector wage bill. 3.2 The African countries' experience with managing public sector wage bill 3.3 Contextualizing public sector wage bill in South Africa 4. LIMPOPO PROVINCIAL GOVERNMENT BUDGET ALLOCATION AND PERSONNEL SPENDING. 5. THEORETICAL ELUCIDATION
DOI:
https://doi.org/10.24203/gdyvgn69Keywords:
wage bill, government, employees' salaries, expenditure, budget, public sector and service deliveryAbstract
Many African countries face difficult choices in managing the size of their public sector wage bill, which poses an acute threat to fiscal and macro-economic stability. The wage bill accounts for a growing share of government expenditures across Southern Africa and threatens to stifle the government's normal operations. The high public sector wage bill compromises service delivery because a substantial amount is committed to employees' salaries and benefits. Governments need to restrain the rising public sector wage personnel expenditure while at the same time taking into account the government's significant priorities as far as development is concerned. Most countries worldwide that struggle to compete effectively in the global economy review their compensation practices to return to fiscal balance. The proper control over the public purse is fundamental to any responsible government. This includes all spheres of government such as National, Provincial and Local Government.
Government departments must focus on delivering quality public services by effectively managing their wage bill through adequate fiscal planning and employment flexibility. In addition, with the rise of technological innovation, governments need to relook at the size of public service and alternative service delivery approaches that will drastically lower the wage bill without hampering the provisioning of services.
The paper aims to formulate a strategy to confine the government's escalating wage bill by strengthening resource planning, estimating, costing, budgeting, and controlling personnel expenditure. The setting for this study is Limpopo Province in South Africa. Empirical data were collected by administering semi-structured interviews, and the gathered data were thematically presented and analyzed.
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