Tag: wage bill

SOUTH AFRICA: Pandemic adds uncertainty to government’s wage bill battle

Teneo March 19, 2020

● The South African Reserve Bank (SARB)’s rare 100 basis point rate cut today, 19 March, will provide a welcome monetary boost.

● But the fiscal outlook is expected to worsen further, particularly if the anticipated recession and any fiscal stimulus measures combine with a failure to deliver on the government’s promise to cut down the wage bill.… Read the rest

SOUTH AFRICA: Mboweni promises wage bill cuts, but can he deliver?

Teneo February 26, 2020

● The key concession to credit ratings agencies in Finance Minister Tito Mboweni’s 26 February budget presentation was his promise to reduce South Africa’s wage bill by ZAR 160.2bn over three years.… Read the rest

SOUTH AFRICA: Mboweni’s do-or-die budget

Teneo February 24, 2020

● Expectations ahead of the budget presentation on 26 February are largely pessimistic in the context of deteriorating economic growth and skyrocketing public debt.

● Finance Minister Tito Mboweni will try – against all odds – to avert the loss of South Africa’s final investment-grade credit rating.… Read the rest