THE government's wage bill has come under fresh
scrutiny following revelations that the state currently spends well over
half a trillion shillings per month to pay civil service salaries.
Minister of Finance and Planning, Dk Mpango
The
Ministry of Finance and Planning announced recently that a total of
573.7 billion/- was used to pay salaries to some 556,418 civil servants
during the just-ended month of February 2016 alone. This is more than
half (57 per cent) of total government revenue collection of around
1trn/- by February 22,
According to experts, this is contrary to the accepted international standard of 34 per cent for sub-Saharan African countries - even though the final collection tally for the month is likely to be higher.
Still, in an interview with The Guardian, the Chief Secretary and Head of Civil Service, Ambassador Ombeni Sefue, sought to allay fears that the public sector wage bill was ballooning and asserted instead that it was well within manageable levels.
"The ratio of the government’s wage bill compared to revenue collection may seem lopsided, but this is because revenue collection is still insufficient," Sefue said.
"As efforts continue to ramp up revenue collection, the percentage of revenue allocated for the salaries of civil servants will subsequently decline," he added.
The CS also asserted that there were no plans to prune the public service workforce any further, hinting that the number of government workers could even increase alongside current moves to expand the education and health sectors and improve law enforcement.
"Teachers make up half of the government's total civil service workforce. The health sector and the police carry large proportions too," said Sefue.
Calls have been growing for reforms within the civil service, including some downsizing to ensure a leaner and more effective government in line with President John Magufuli's decision to reduce the size of the ministerial cabinet.
But Sefue made it clear that radical surgery of the civil service wage bill – which Trade Union Congress of Tanzania (TUCTA) secretary general Nicholaus Mgaya described as "bloated" - would not be part of that agenda.
According to Mgaya, at least 52 percent of the wage bill is spent on various perks for senior government officials while low-cadre teachers, police officers and health workers continue to receive “a minimal monthly wage”.
He said TUCTA has submitted several proposals to the government for a review of the wage bill taking into account that most Tanzanian civil servants are poorly paid compared to other East African states.
Dr Donath Olomi, a Dar es Salaam-based economist, argued that the revenue collected by the government was too meagre compared to actual government budget requirements, given the geographical size of the country.
Olomi echoed the view that the biggest challenge for the government of the day is to reform the civil service to make it more efficient and productive, while also improving its sources of revenue collection.
“The level of public sector efficiency is still a challenge. Most civil servants don’t work as much as they earn, and this is where the problem lies,” he told The Guardian.
Since taking office in November 2015, President John Magufuli has taken several measures aimed at boosting government revenue collection and curbing rampant tax evasion as part of a wider war on corruption.
The Tanzania Revenue Authority (TRA) subsequently announced record revenue collections of 1.4trn/- in the month of January 2016, up from the previous government's monthly average collection of around 900bn/-.
According to experts, this is contrary to the accepted international standard of 34 per cent for sub-Saharan African countries - even though the final collection tally for the month is likely to be higher.
Still, in an interview with The Guardian, the Chief Secretary and Head of Civil Service, Ambassador Ombeni Sefue, sought to allay fears that the public sector wage bill was ballooning and asserted instead that it was well within manageable levels.
"The ratio of the government’s wage bill compared to revenue collection may seem lopsided, but this is because revenue collection is still insufficient," Sefue said.
"As efforts continue to ramp up revenue collection, the percentage of revenue allocated for the salaries of civil servants will subsequently decline," he added.
The CS also asserted that there were no plans to prune the public service workforce any further, hinting that the number of government workers could even increase alongside current moves to expand the education and health sectors and improve law enforcement.
"Teachers make up half of the government's total civil service workforce. The health sector and the police carry large proportions too," said Sefue.
Calls have been growing for reforms within the civil service, including some downsizing to ensure a leaner and more effective government in line with President John Magufuli's decision to reduce the size of the ministerial cabinet.
But Sefue made it clear that radical surgery of the civil service wage bill – which Trade Union Congress of Tanzania (TUCTA) secretary general Nicholaus Mgaya described as "bloated" - would not be part of that agenda.
According to Mgaya, at least 52 percent of the wage bill is spent on various perks for senior government officials while low-cadre teachers, police officers and health workers continue to receive “a minimal monthly wage”.
He said TUCTA has submitted several proposals to the government for a review of the wage bill taking into account that most Tanzanian civil servants are poorly paid compared to other East African states.
Dr Donath Olomi, a Dar es Salaam-based economist, argued that the revenue collected by the government was too meagre compared to actual government budget requirements, given the geographical size of the country.
Olomi echoed the view that the biggest challenge for the government of the day is to reform the civil service to make it more efficient and productive, while also improving its sources of revenue collection.
“The level of public sector efficiency is still a challenge. Most civil servants don’t work as much as they earn, and this is where the problem lies,” he told The Guardian.
Since taking office in November 2015, President John Magufuli has taken several measures aimed at boosting government revenue collection and curbing rampant tax evasion as part of a wider war on corruption.
The Tanzania Revenue Authority (TRA) subsequently announced record revenue collections of 1.4trn/- in the month of January 2016, up from the previous government's monthly average collection of around 900bn/-.
