Research Briefing | May 31, 2021

South Africa: Public sector wage bill set to increase further

The South African government has been struggling to rein in the public sector wage bill in the past. This seems to be the case again this year as National Treasury already extended an offer that will exceed its own budgeted figure for FY 2021/22. We examine what impact this offer will have on the fiscus.

Copy of Ipad Frame (26)What you will learn about:

  • Wage bill increases in the past have exceeded inflation comfortably
  • Labour unions came out swinging with double-digit demands
  • Fiscal deficit to widen with current offer on the table
Back to Resource Hub

Related Services

Post

UK: Sterling’s woes, Kwarteng’s vows, Bailey in the middle

The negative market reaction to last week's fiscal announcements appears to be a function of doubts over the credibility of the UK government's long-term fiscal plans. Though we think the structural position is not as bad as last Friday's drop in asset prices implies, it's clear the government will struggle to retain credibility if it fails to engage with market concerns.

Find Out More
Tokyo, Japan

Post

BoJ to look through a temporary decline in monetary base

The Bank of Japan (BoJ) left monetary policy unchanged at today's (22nd Sep) meeting, maintaining current short- and long-term interest rates, despite another wave of yen weakening and upward pressures on JGB yields. 

Find Out More