Mogajane warns of Budget cuts as expenditure pressures mount to some R105bn

National Treasury director-general Dondo Mogajane is warning that major Budget cuts will be required to offset a range of expenditure pressures that had arisen as a result of recent government decisions, including the 2021/22 wage settlement, which would increase the public sector compensation bill by a further R20-billion. Speaking during a virtual briefing of Parliament’s Standing Committee on Appropriations, Mogajane said that the 1.5% wage settlement would cost R20-billion more than the compensation ceiling outlined in the February Budget.