Finance minister Enoch Godongwana presented the medium-term budget policy statement in parliament, which can be labelled a difficult budget because of, among other things, a R22.3bn revenue shortfall.
This means the Treasury must stick to prudent measures of reducing debt, which will stabilise at 75.5% of GDP by 2025/26. Debt service costs eat up 22c of every R1 government spends.
The shortfall comes as government is battling with employment creation in a low economic growth environment. While load-shedding was considered a major impediment to employment-creation efforts, Eskom has managed to keep the lights on for over 200 days, barring outages here and there. Yet the unemployment rate remains unchanged.
The public sector wage bill, on the other hand, must be contained and tough love must continue for SOEs without adding to the unemployment imbroglio. While the Treasury has the unenviable task of stabilising the national debt, it must also ratchet up economic growth to deal with joblessness.
However, as we work towards these fiscal goals, we must also be cautious about the implications of certain budgetary decisions, particularly those concerning our older civil servants.
Godongwana's announcement of an allocation of R11bn to encourage elderly civil servants who may not possess critical skills to opt for early retirement in a bid to curtail the government's high wage bill is a case in point. This, however, raises concerns about the potential for discrimination based on age in the workforce.
It would be interesting to understand what the government defines as a non-critical skill. Have they identified what these are? Would they get young people to replace those elderly public servants or would those positions be left vacant? This would have possible negative ramifications for citizens, who might not receive certain services because a non-critical functionary was removed?
While the desire to refresh the public service with new, youthful, hopefully energetic and service-centric talent is understandable, we must be wary of the underlying the narrative that devalues the contributions of experienced personnel.
Age does not diminish competence, and older civil servants possess much institutional knowledge that can benefit our governance. Encouraging voluntary retirement without considering the ramifications can lead to a loss of wisdom and potential mentorship that serves as a bedrock for public institutions.
Instead, we should focus on creating an inclusive environment where the skills of seasoned employees are utilised effectively, while also providing opportunities for younger, hardworking generations to flourish.
As the National Treasury implements measures to address the revenue shortfall, policies designed to achieve fiscal goals must not inadvertently foster an atmosphere of exclusion based on age. Instead of viewing older workers as a burden, we should recognise their potential as invaluable assets who can mentor and guide our future leaders.
While the budget reflects necessary and prudent measures in a challenging economic climate, we must ensure that our approach remains inclusive. As we work towards enhancing fiscal stability and reducing debt, let us remember that our workforce’s strength lies in its diversity — across age, skills, and experience.
By fostering an environment that respects and values all contributions, we can build a public service that is both resilient and adaptable, and prepared to tackle the challenges of tomorrow.
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