In a study published last week, the Fitch credit rating agency has warned the ANC government, which is still reluctant to consider public sector salary demands for the next three-year term, over it’s inability to exercise control over spending, which could lead to further budget problems.
Fitch Rating Agency Warns ANC Regime over Uncontrolled Spending and Unproductive Public Sector Salaries!
Fitch Rating Agency Warns ANC Regime over Uncontrolled Spending and Unproductive Public Sector Salaries!
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In a study published last week, the Fitch credit rating agency has warned the ANC government, which is still reluctant to consider public sector salary demands for the next three-year term, over it’s inability to exercise control over spending, which could lead to further budget problems.
The ratings agency pointed out that the compensation paid to public sector workers, which makes up a massive 35% of the workforce, will not yield good results, and furthermore, any salary increases and adjustments could be detrimental, as the country’s growth will only be around 2% for the financial year.
In response to the agency’s report, Nazmeera Moola, head of SA Investments, claimed that the agencies were inclined to be skeptical of the ANC government’s ability to stick to its position of 0% increase in remuneration.
He says there is also doubt about the government’s ability to create growth in the economy, and while it was a source of concern, the ANC government is appa
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