Huge wage bill unsustainable
Bank of Namibia governor Iipumbu Shiimi has become the latest official to speak out against the rampant state wage bill, which currently stands at almost N$30 billion. This has surely become unsustainable, as it swallows about 50% of government’s revenue. Government had earlier undertaken to massively cut its wage bill by introducing mandatory annual leave, as well as well as asking civil servants to consider going on early retirement, while another target was to reduce the use of private consultants in order to maintain expenditure and austerity measures.
“The aim is to provide an opportunity for staff members who wish to retire before the age of 60 to do so. Each case will be treated differently, based on the human resources plan of offices, ministries and agencies,” government stated at the time. However, it remains to be seen whether this plan is really yielding the necessary results, given the lack of reporting in this regard. The N$30 billion wage bill spells disaster because it has crowded out other spending and limited government’s ability to stimulate the economy and create much-needed jobs. With almost half of our young people languishing in poverty and unemployment, the onus is on government to initiate a stimulus package to alleviate the status quo, by addressing bread-and-butter issues, including speeding up the delivery of housing and sanitation, as well as ensuring greater transparency to curb wastage and corruption. The ballooning public service wage bill is also unsustainable, as it not only compromises economic growth, but also increases inflationary risks. It is now up to treasury to wield the axe and curb spending on luxury cars, entertainment, accommodation and travel, among others, of senior government officials. It cannot be business as usual when ordinary taxpayers have to bear the brunt of budget cuts on a daily basis, while those who are quick to claim they are public servants continue to demand more perks on top of their high-paying jobs.
“The aim is to provide an opportunity for staff members who wish to retire before the age of 60 to do so. Each case will be treated differently, based on the human resources plan of offices, ministries and agencies,” government stated at the time. However, it remains to be seen whether this plan is really yielding the necessary results, given the lack of reporting in this regard. The N$30 billion wage bill spells disaster because it has crowded out other spending and limited government’s ability to stimulate the economy and create much-needed jobs. With almost half of our young people languishing in poverty and unemployment, the onus is on government to initiate a stimulus package to alleviate the status quo, by addressing bread-and-butter issues, including speeding up the delivery of housing and sanitation, as well as ensuring greater transparency to curb wastage and corruption. The ballooning public service wage bill is also unsustainable, as it not only compromises economic growth, but also increases inflationary risks. It is now up to treasury to wield the axe and curb spending on luxury cars, entertainment, accommodation and travel, among others, of senior government officials. It cannot be business as usual when ordinary taxpayers have to bear the brunt of budget cuts on a daily basis, while those who are quick to claim they are public servants continue to demand more perks on top of their high-paying jobs.
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Namibian Sun
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