S.Africa wage bill may burst budget frugality

JOHANNESBURG (Reuters) - The South African government's plan to keep a lid on spending in the budget outlined this week will face a big test in the coming months when government workers finalise new wage deals. 

The unions, representing 1.3 million workers, are at loggerheads with the government. Any deal above the five to six percent that has been set aside would add billions of dollars to expenditures and jeopardise the deficit projection of 4.6 percent of gross domestic product in the 2012/13 state budget.

Link (submitted by Andrew)