In a recent report, the National Treasury’s director general, Dondo Mogajane, warned of a fiscal crisis due to the Eskom bailouts. Apparently the treasury needs R120bn to meet its obligations and even though tax revenue collection has improved by 6.8% during the first two months of this year, a continued increase at this level will not be enough. According to National Treasury, the gap in the state’s budget can be filled in two ways by, 1) entering into negotiations with public sector unions to cut salaries by 10% and/or 2) reallocating existing budgeted expenditure. In today’s show we take a closer look at the situation of SA’s fiscal crisis and its likely impact on public sector workers. With us to discuss this we have…
GUEST: Neil Coleman, who is a Senior Researcher at the Institute for Economic Justice (IEJ) and former co-ordinator of Cosatu's parliamentary office