Govt can pay 3pc increase in public sector wages, says Marape

THE public sector wage and salary bill for the first half of the year is exactly half of the 2018 budgeted appropriation, says Finance Minister James Marape.
He said wage levels were carefully considered last year during budget deliberations and a cautious path was chosen considering the prevailing economic conditions at the time.
“Expenditure was tightened and we did anticipate we could afford the 3 per cent wage increase in 2018. We did not include it in the budget,” he said.
He said the February earthquake affected the budget plans.
“The leadership of our government, the remedial measures undertaken post the earthquake by companies, international partners, government entities and public servants have resulted in an exceptional reconstruction effort and an early resumption of economic activity.
“This has now been confirmed that we (should) expect revenues to come in above budget by K213.1 million this year,” he said.
He said the Mid-Year Economic Fiscal Outlook report showed that as of June 30, public sector wages and salaries expenditure was K1861.8 million. This compares to the full 2018 budget appropriation of K3750.3 million and the 2017 outturn of K4201.2 million.
“This is an exceptional achievement, given the severity of the earthquake and the disruption to our people’s lives.
“With the increase in revenue and with the receipt of funds from Credit Suisse and budget support funds from the Asian Development Bank, as well as the expected funds from the World Bank and the inaugural bond issuance programme, the Government can now afford to pay the 2017 3 per cent increase in salaries and begin paying the 3 per cent increase granted in 2018.”