Civil servants’ bill up by 230%

By: JO-MARÉ DUDDY

THE cost of the bloated civil service has ballooned by more than 230% over the past ten years: from N$5,2 billion in 2003-04 to N$17,5 billion in 2013-14.

The billions budgeted for personnel costs for the new financial year, which starts on April 1, will gobble up nearly 44% of Government’s total revenue and grants for the year, and will make up 36,8% of total expenditure.
The N$17,5 billion for staff costs in 2013-14 is 22% more than Government’s salary bill in the current financial year. In
2014-15, about N$18,9 billion will be spent of civil servants’ remuneration packages. This will increase to N$19,6 billion the following year.
When she tabled the 2013-14 budget last week, Finance Minister Saara Kuugongelwa-Amadhila said the 8% increase in civil servants’ packages agreed to last year, was mainly responsible for the fact that Government’s total expenditure for the new financial year is 19% higher than in 2012-13.
The bill for 2013-14 includes salaries of about N$14 billion, Government’s contributions to the Government Institutions Pension Fund (GIPF) of about N$1,9 billion, and N$1,3 billion to regrade the existing remuneration structure.
On top of the N$17,5 billion, Kuugongelwa-Amadhila has also set aside about N$1,5 billion for civil servants’ medical aid claims, about 9% more than in 2013-14.
In addition, about N$593 million will be spent on travel and subsistence (S&T) allowances for 2013-14, also about 9% higher than in 2012-13.

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