Tell them, not me.
No, I'm helping you because I can see you're struggling. [Laughter.] [Applause.] The target measure excludes support to Eskom because that is part of a separate process.
As a first step, we have identified spending reductions of R21 billion in 2020-21 and R29 billion in 2021-22, mostly and unfortunately in the area of goods and services, and transfers. In addition, noninterest spending in the outer years of the framework is constrained in line with consumer price inflation. That said, if we want to achieve our target, we will need to find additional measures in excess of R150 billion over the next three years or about R50 billion a year.
How would we do this? We will need to deal with the challenges of the wage bill, SOCs, executive remuneration and benefits, and fiscal leakages.
In the review accompanying this statement, we set out a detailed analysis of spending on public-sector wages. It shows that ... This is an interesting figure actually. It shows that 29 000 public servants, plus members of the national executive, Members of Parliament, members of provincial executives, and so forth, each earned more than R1 million last year. So they've become millionaires. [Interjections.] This is more than double the number of civil servants earning more than R1 million in 2006- 07. So when members of the DA shout up and down, you must know that it is because they are concerned about their status. [Interjections.]
The average wage increase across government was 6,8% in 2018-19 or 2,2% above inflation. After adjusting for inflation, the average government wage has risen by 66% in the last 10 years. We look forward to robust discussions in the relevant bargaining structures and
with other stakeholders to achieve a sustainable solution. We are all in this together. [Interjections.]
In the same breath, we would like to send a message to SOCs, public entities and the private sector, the boards of directors and executive management, on compensation and benefits which must be managed downwards.
The President has issued a directive which will apply to members of Cabinet and members of provincial executives as follows. Firstly, for the foreseeable future, Cabinet, premiers and MECs' salaries will be frozen at current levels, with the likelihood of further negotiations; [Interjections.] secondly, the cost ... [Applause.] ... of official cars ... [Interjections.] ... at national, provincial and local level will be capped at R800 000, VAT inclusive; [Interjections.] thirdly, a new cellphone dispensation will cap the amount claimable from the state; fourthly, all domestic travel will be on economy class; [Applause.] fifthly, the Minister of Finance will make a determination on the appropriate use of subsistence and travel for all arms of the state. I encourage ... Listen carefully. Mr Deputy Speaker, listen
carefully. I encourage the leadership of Parliament to think about applying the same rules. [Applause.]
In the 2019 Budget, some measures were announced. These included the following. Firstly, a programme to ease the wage bill; secondly, the national macro reorganisation of government; and thirdly, reducing performance bonuses, freezing salaries for members of the executive and parliamentarians, amongst others. Unfortunately, these have not been fully realised as savings. The early retirement programme has only yielded about 4 000 volunteers so far. We will need to reinvigorate this process.