News South Africa

Social benefits, payroll drives up government's spending

According to reports by Business Live, Fin24 and Business Report, social benefits, grants and payments to public servants are swallowing a huge part of the R792-billion spent by government on operating expenses in the 2010-11 financial year according to figures released by Statistics South Africa.

The figures assess government's cash payments across seven categories: compensation to employees; purchases of goods and services; interest; subsidies; grants; social benefits and "other" payments. Grants worth R468,9-billion were paid, followed by social benefits of R91,4-billion and compensation to employees of R87-billion, Business Live, Fin24 and Business Report report.

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