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Stifling wage bill...what next???
Rank: Elder Joined: 2/27/2007 Posts: 2,768
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An article in todays daily Nation newspaper by Deputy President William Ruto gives a dark future on the country's economic growth/development due to the high wage bill...An extract from the article reads thus; Quote:...On the other hand, we can forget Vision 2030, attainment of middle-income status and double-digit economic growth if we don’t contain the wage bill. Currently, the public sector wage bill is Sh458.7 billion, projected to reach Sh548.8 billion if suggested recommendations as well as other sub-sectoral demands are incorporated. As a percentage of the GDP, the wage bill stands at 12.2 per cent, of which 7.8 per cent represents the civil service wage, projected to rise to 14.6 per cent, with the civil service taking 9.3 per cent.
To put these figures into perspective, levels for middle-income economies average 8.5 per cent, whilst low income countries require levels of 7 per cent to unlock economic growth. Currently, Africa trends at 9.5 per cent.
To further bring the point home, the Public Finance Management Act, 2012, requires a provision of 30 per cent of the total national budget for development expenditure. Currently, recurrent budget gobbles up 74 per cent, leaving 26 per cent for development.
The proposed wage bill would push recurrent expenditure to 79 per cent. This leaves only 21 per cent for development which contravenes the law. Equally it is incompatible with the national economic development roadmap... Bearing the above in mind, Ruto did not tell us how the government intends to prevent the disastrous effects of this wage bill or what steps it is taking to cut the payroll to a bare minimum... The full article is in the link below: http://www.nation.co.ke/.../-/uixluaz/-/index.html
If Deputy President reads wazua forum, which I hope he does, what would you advise him? ...besides, the presence of a safe alone does not signify that there is money inside...
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Rank: Elder Joined: 5/21/2013 Posts: 2,841 Location: Here
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Kaigangio wrote:An article in todays daily Nation newspaper by Deputy President William Ruto gives a dark future on the country's economic growth/development due to the high wage bill...An extract from the article reads thus; Quote:...On the other hand, we can forget Vision 2030, attainment of middle-income status and double-digit economic growth if we don’t contain the wage bill. Currently, the public sector wage bill is Sh458.7 billion, projected to reach Sh548.8 billion if suggested recommendations as well as other sub-sectoral demands are incorporated. As a percentage of the GDP, the wage bill stands at 12.2 per cent, of which 7.8 per cent represents the civil service wage, projected to rise to 14.6 per cent, with the civil service taking 9.3 per cent.
To put these figures into perspective, levels for middle-income economies average 8.5 per cent, whilst low income countries require levels of 7 per cent to unlock economic growth. Currently, Africa trends at 9.5 per cent.
To further bring the point home, the Public Finance Management Act, 2012, requires a provision of 30 per cent of the total national budget for development expenditure. Currently, recurrent budget gobbles up 74 per cent, leaving 26 per cent for development.
The proposed wage bill would push recurrent expenditure to 79 per cent. This leaves only 21 per cent for development which contravenes the law. Equally it is incompatible with the national economic development roadmap... Bearing the above in mind, Ruto did not tell us how the government intends to prevent the disastrous effects of this wage bill or what steps it is taking to cut the payroll to a bare minimum... The full article is in the link below: http://www.nation.co.ke/.../-/uixluaz/-/index.html
If Deputy President reads wazua forum, which I hope he does, what would you advise him? I'd advise him to first rein in the politicians. The day it became fashionable for mpigs to dispense with all public opinion and fix their own pay, that same day it became nigh impossible to deny a pay increment to any other unlicensed employee. After all how do you justify there being no money to pay teachers or nurses but it's always there for mpigs incessant demands? Secondly, of the 'lowly' 21% currently allocated as development expenditure, a significant portion still remains unutilized and has to be returned to treasury every financial year. This in a country with pressing socioeconomic needs where we frequently complain of lack of funds for this or the other. If I gave you Ksh. 100 today and you utilized only about half of it, on what basis then would you justify your asking me to give you Ksh.500 yet day in, day out you're unable to utilize the 100bob? Finally, there's too much wastage in the management if our public affairs. Just a few short years ago, there was an order to freeze gov't purchase of vehicles exceeding a certain engine capacity. Look around you today and tell me if this is being implemented/enforced. At the same time, walk around many gov't compounds and tell me why we have practically new gov't vehicles being abandoned for simplistic problems such as a worn out battery, broken door lock, faulty braking system, cracked windscreen, etc. you want practical examples of this? I dare you to visit the MoPW compound in Meru, the Kangundo DMoH compound, Youth Affairs compound in a town I forget, etc. while at it, why does the gov't have to pay inflated prices for literally everything? Ni hayo machache tu kwa sasa. Ahsante. Life is like playing a violin solo in public and learning the instrument as one goes on.
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Rank: Elder Joined: 6/2/2011 Posts: 4,824 Location: -1.2107, 36.8831
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They can reduce the amount by atleast 2.5% by eliminating GHOST employees in all ministries and parastatals. How many 'GHOST' Teachers, 'GHOST' Policemen, 'GHOST' Soldiers, 'GHOST' Nurses etc are out there? How many dead/sacked employees still collect 'their' monthly salaries. Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Do away with messengers, tea gals, cleaners and out source some of these services. In that they save on equipment etc. Reduce some of these parastatals eg the boards such as Athi river services board ...tana bla bla, what do they do? Trips abroad should have a MAX limit. Conferences in hotels should end. These govt offices have conference rooms that should be utilized. Adopt technology by having video/tele conferencing. When these people go to places like Naivasha and Mombasa they are paid an allowance "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore .
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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dunkang wrote:They can reduce the amount by atleast 2.5% by eliminating GHOST employees in all ministries and parastatals.
How many 'GHOST' Teachers, 'GHOST' Policemen, 'GHOST' Soldiers, 'GHOST' Nurses etc are out there? How many dead/sacked employees still collect 'their' monthly salaries. Privatise parastatals. The opposite of courage is not cowardice, it's conformity.
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Rank: Elder Joined: 5/21/2013 Posts: 2,841 Location: Here
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jerry wrote:dunkang wrote:They can reduce the amount by atleast 2.5% by eliminating GHOST employees in all ministries and parastatals.
How many 'GHOST' Teachers, 'GHOST' Policemen, 'GHOST' Soldiers, 'GHOST' Nurses etc are out there? How many dead/sacked employees still collect 'their' monthly salaries. Privatise parastatals. IMO, some services should never be privatized e.g water, power, education. Life is like playing a violin solo in public and learning the instrument as one goes on.
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Rank: Elder Joined: 2/26/2012 Posts: 15,980
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Is there anyone who knows if the cars that were replaced by Passats were ever sold? "There are only two emotions in the market, hope & fear. The problem is you hope when you should fear & fear when you should hope: - Jesse Livermore .
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Rank: Veteran Joined: 2/3/2010 Posts: 1,797 Location: Kenya
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massive retrenchment program in the cards...plus early retirements and review of retirement age to a digitally acceptable one I may be wrong..but then I could be right
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Rank: Elder Joined: 3/29/2011 Posts: 2,242
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To do a critical analysis of the wage bill, we need to figure out who earns what and not focus on the generalities. 346 MPs may earning more than the entire police or teaching force. That way we can cut where the excess fat is ( like the MPs pay). "Things that matter most must never be at the mercy of things that matter least." Goethe
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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murchr wrote:Do away with messengers, tea gals, cleaners and out source some of these services. In that they save on equipment etc.
Reduce some of these parastatals eg the boards such as Athi river services board ...tana bla bla, what do they do?
Trips abroad should have a MAX limit.
Conferences in hotels should end. These govt offices have conference rooms that should be utilized. Adopt technology by having video/tele conferencing. When these people go to places like Naivasha and Mombasa they are paid an allowance hapo umenena. A parastatal I haveconsulted for has been of late sending their staff for out of the country trips. At any one time there's someone out for a conference, training etc.
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