opposition parties have rejected national Treasury’s consideration of withdrawing half its contingency reserves to reduce the government’s debt and fund public-sector salaries.
However, trade union Cosatu welcomed the move to ease the debt on state-owned enterprises.
Dr Dion George, DA spokesperson on finance, said the government wants to access a portion of the funds held by the Reserve Bank.
“The reason is that the government has run out of money and wants to pay debt and fund public sector salaries.
“Our economy is not growing, therefore there is not enough revenue to pay for the excessive spending by the government.”
Government spending on the public sector wage bill continues unabated, George said.
“The government said they would restrain that spending, but it has not happened. That number keeps going up…