With government borrowing more than R1.2bn a week to meet expenses, deputy minister of finance David Masondo has proposed a state wage freeze to curb costs.
"We also have to look at a wage-freeze starting with us public office bearers at all levels of the state if we are to seriously tackle our looming fiscal crisis," Masondo said in an address to fund managers and other investors earlier in the week. Compensation now accounts for more than 35% of SA's consolidated public spending.
"Our tax revenue is very low mainly due to low economic growth; and the institutional challenges at SARS associated with what is now known as state capture have affected revenue collection.
"Raising taxes in the context of low economic growth is not an option. Growing the economy is the only option in order to build a broader economic base for revenue generation."